Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Radian Group Inc. | ||
Entity Central Index Key | 890,926 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 213,657,506 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3,449,403,478 |
Consolidated Balance Sheets Sta
Consolidated Balance Sheets Statement - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | $ 4,021,575 | $ 3,458,719 |
Trading securities—at fair value | 469,071 | 606,401 |
Equity Securities, FV-NI | 130,565 | |
Equity securities—at fair value (cost of $139,377 and $163,106) | 162,830 | |
Short-term investments—at fair value (includes $11,699 and $19,357 of reinvested cash collateral held under securities lending agreements) | 528,403 | 415,658 |
Other invested assets—at fair value (amortized cost at December 31, 2017) | 3,415 | 334 |
Total investments | 5,153,029 | 4,643,942 |
Cash | 95,393 | 80,569 |
Restricted cash | 11,609 | 15,675 |
Accounts and notes receivable | 78,652 | 72,558 |
Deferred income taxes, net (Note 10) | 131,643 | 229,567 |
Goodwill and other acquired intangible assets, net (Note 7) | 58,998 | 64,212 |
Prepaid reinsurance premiums (Note 2) | 417,628 | 386,509 |
Other assets (Note 9) | 367,700 | 407,849 |
Total assets | 6,314,652 | 5,900,881 |
Liabilities and Stockholders’ Equity | ||
Unearned premiums | 739,357 | 723,938 |
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 401,361 | 507,588 |
Senior notes (Note 12) | 1,030,348 | 1,027,074 |
Reinsurance funds withheld (Note 2) | 321,212 | 288,398 |
Other liabilities (Note 13) | 333,659 | 353,845 |
Total liabilities | 2,825,937 | 2,900,843 |
Stockholders’ equity | ||
Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2018 and 2017; 231,132 and 233,417 shares issued at December 31, 2018 and 2017, respectively; 213,473 and 215,814 shares outstanding at December 31, 2018 and 2017, respectively | 231 | 233 |
Treasury stock, at cost: 17,660 and 17,603 shares at December 31, 2018 and 2017, respectively | (894,870) | (893,888) |
Additional paid-in capital | 2,724,733 | 2,754,275 |
Retained earnings | 1,719,541 | 1,116,333 |
Accumulated other comprehensive income (loss) (Note 18) | (60,920) | 23,085 |
Total stockholders’ equity | 3,488,715 | 3,000,038 |
Total liabilities and stockholders’ equity | 6,314,652 | 5,900,881 |
Commitments and Contingencies (Note 14) |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Amortized Cost | $ 4,098,962 | $ 3,426,217 |
Available-for-sale Equity Securities, Amortized Cost Basis | 139,377 | 163,106 |
Securities Received as Collateral | $ 11,700 | $ 19,357 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues: | |||||
Net premiums earned—insurance | $ 1,014,007 | $ 932,773 | $ 921,769 | ||
Services revenue | 144,972 | 155,103 | 168,894 | ||
Net investment income | 152,475 | 127,248 | 113,466 | ||
Net gains (losses) on investments and other financial instruments | (42,476) | 3,621 | 30,751 | ||
Other income | 4,028 | 2,886 | 3,572 | ||
Total revenues | 1,273,006 | 1,221,631 | 1,238,452 | ||
Expenses: | |||||
Provision for losses | 104,641 | 135,154 | 202,788 | ||
Policy acquisition costs | 25,265 | 24,277 | 23,480 | ||
Cost of services | 98,124 | 104,599 | 114,174 | ||
Other operating expenses | 280,818 | 267,321 | 244,896 | ||
Restructuring and other exit costs (Note 1) | 6,053 | 17,268 | 0 | ||
Interest expense | 61,490 | 62,761 | 81,132 | ||
Loss on induced conversion and debt extinguishment (Note 12) | 0 | 51,469 | 75,075 | ||
Impairment of goodwill (Note 7) | 0 | 184,374 | 0 | ||
Amortization and impairment of other acquired intangible assets | 12,429 | 27,671 | 13,221 | ||
Total expenses | 588,820 | 874,894 | 754,766 | ||
Pretax income | 684,186 | 346,737 | 483,686 | ||
Income tax provision | 78,175 | 225,649 | 175,433 | ||
Net income | $ 606,011 | $ 121,088 | $ 308,253 | ||
Earnings Per Share, Basic: | |||||
Net income (loss), per basic share | $ 2.83 | $ 0.56 | $ 1.46 | ||
Earnings Per Share, Diluted: | |||||
Net income (loss) per diluted share | $ 2.77 | [1] | $ 0.55 | [1] | $ 1.37 |
Weighted-average number of common shares outstanding—basic | 214,267 | 215,321 | 211,789 | ||
Weighted-average number of common and common equivalent shares outstanding—diluted | 218,553 | 220,406 | 229,258 | ||
[1] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 139,779 | $ 142,797 | $ 208,949 | $ 114,486 | $ 6,816 | $ 65,142 | $ (27,342) | $ 76,472 | $ 606,011 | $ 121,088 | $ 308,253 | |
Unrealized gains (losses) on investments: | ||||||||||||
Unrealized holding gains (losses) arising during the period | (97,356) | 31,903 | 8,782 | |||||||||
Less: Reclassification adjustment for net gains (losses) included in net income | (10,270) | (2,642) | 2,251 | |||||||||
Net unrealized gains (losses) on investments, net of tax | (87,086) | 34,545 | 6,531 | |||||||||
Unrealized foreign currency translation adjustments | 5 | 150 | (474) | |||||||||
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income | 1 | (721) | 0 | |||||||||
Net foreign currency translation adjustments | 4 | 871 | (474) | |||||||||
Net actuarial gains | 129 | 64 | 25 | |||||||||
OCI, net of tax | (86,953) | 35,480 | 6,082 | |||||||||
Comprehensive income | $ 519,058 | $ 156,568 | $ 314,335 | |||||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Stockholders' Equity - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income (Loss) | ASU 2016-09Additional Paid-in Capital | ASU 2016-09Retained Earnings/(Deficit) | ASU 2016-01Retained Earnings/(Deficit) | ASU 2016-01Accumulated Other Comprehensive Income (Loss) | ASU 2018-02Retained Earnings/(Deficit) | ASU 2018-02Accumulated Other Comprehensive Income (Loss) |
Cumulative effect of adopting accounting standard update | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Balance, at Dec. 31, 2015 | $ 224 | $ (893,176) | $ 2,716,618 | $ 691,742 | $ (18,477) | ||||||||
Impact of extinguishment of convertible senior notes (Note 12) | 17 | ||||||||||||
Issuance of common stock under incentive and benefit plans | 0 | 2,117 | |||||||||||
Termination of capped calls (Note 12) | 0 | ||||||||||||
Shares repurchased under share repurchase program (Note 15) | (9) | (100,179) | |||||||||||
Repurchases of common stock under incentive plans | (156) | ||||||||||||
Stock-based compensation | 18,257 | ||||||||||||
Impact of extinguishment of convertible senior notes (Note 12) | 143,078 | ||||||||||||
Net income | $ 308,253 | 308,253 | |||||||||||
Dividends declared | (2,105) | ||||||||||||
Net unrealized gains (losses) on investments, net of tax | 6,531 | 6,531 | |||||||||||
Net foreign currency translation adjustment, net of tax | (474) | (474) | |||||||||||
Net actuarial gains | 25 | 25 | |||||||||||
Balance, at Dec. 31, 2016 | $ 2,872,286 | 232 | (893,332) | 2,779,891 | 997,890 | (12,395) | |||||||
Cumulative effect of adopting accounting standard update | $ 0 | (491) | 0 | 0 | 0 | 0 | |||||||
Impact of extinguishment of convertible senior notes (Note 12) | 0 | ||||||||||||
Issuance of common stock under incentive and benefit plans | 1 | 8,635 | |||||||||||
Termination of capped calls (Note 12) | 4,208 | ||||||||||||
Shares repurchased under share repurchase program (Note 15) | 0 | (6) | |||||||||||
Repurchases of common stock under incentive plans | (556) | ||||||||||||
Stock-based compensation | 13,491 | ||||||||||||
Impact of extinguishment of convertible senior notes (Note 12) | (52,700) | ||||||||||||
Net income | 121,088 | 121,088 | |||||||||||
Dividends declared | (2,154) | ||||||||||||
Net unrealized gains (losses) on investments, net of tax | 34,545 | 34,545 | |||||||||||
Net foreign currency translation adjustment, net of tax | 871 | 871 | |||||||||||
Net actuarial gains | 64 | 64 | |||||||||||
Balance, at Dec. 31, 2017 | 3,000,038 | 3,000,038 | 233 | (893,888) | 2,754,275 | 1,116,333 | 23,085 | ||||||
Cumulative effect of adopting accounting standard update | 756 | $ 0 | $ 2,061 | $ 224 | $ (2,724) | $ 2,724 | |||||||
Impact of extinguishment of convertible senior notes (Note 12) | 0 | ||||||||||||
Issuance of common stock under incentive and benefit plans | 1 | 2,859 | |||||||||||
Termination of capped calls (Note 12) | 0 | ||||||||||||
Shares repurchased under share repurchase program (Note 15) | (3) | (50,050) | |||||||||||
Repurchases of common stock under incentive plans | (982) | ||||||||||||
Stock-based compensation | 17,649 | ||||||||||||
Impact of extinguishment of convertible senior notes (Note 12) | 0 | ||||||||||||
Net income | 606,011 | 606,011 | |||||||||||
Dividends declared | (2,140) | ||||||||||||
Net unrealized gains (losses) on investments, net of tax | (87,086) | (87,086) | |||||||||||
Net foreign currency translation adjustment, net of tax | 4 | 4 | |||||||||||
Net actuarial gains | 129 | 129 | |||||||||||
Balance, at Dec. 31, 2018 | $ 3,488,715 | $ 3,488,715 | $ 231 | $ (894,870) | $ 2,724,733 | $ 1,719,541 | $ (60,920) | ||||||
Cumulative effect of adopting accounting standard update | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities [Abstract] | |||
Net income | $ 606,011 | $ 121,088 | $ 308,253 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Net (gains) losses on investments and other financial instruments | 42,476 | (3,621) | (30,751) |
Loss on induced conversion and debt extinguishment | 0 | 51,469 | 75,075 |
Deferred income tax provision | 120,573 | 166,527 | 170,887 |
Impairment of goodwill | 0 | 184,374 | 0 |
Amortization and impairment of other acquired intangible assets | 12,429 | 27,797 | 13,221 |
Depreciation, other amortization, and other impairments, net | 56,661 | 58,038 | 57,795 |
Change in: | |||
Accounts and notes receivable | (4,599) | 3,628 | (16,011) |
Prepaid reinsurance premiums | (31,119) | (157,071) | (188,947) |
Unearned premiums | 15,419 | 42,716 | 862 |
Reserve for losses and LAE | (109,642) | (252,681) | (216,135) |
Reinsurance funds withheld | 32,814 | 130,397 | 158,001 |
Other assets | 43,562 | (16,491) | (7,662) |
Other liabilities | (106,799) | 4,405 | 57,136 |
Net cash provided by (used in) operating activities | 677,786 | 360,575 | 381,724 |
Cash flows from investing activities: | |||
Proceeds from sales of Fixed-maturity investments available for sale | 728,584 | 888,219 | 687,173 |
Proceeds from sales of Trading securities | 58,317 | 194,784 | 290,855 |
Proceeds from sales of Equity securities | 95,697 | 38,318 | 74,868 |
Proceeds from redemptions of Fixed-maturity investments available for sale | 457,595 | 463,548 | 337,630 |
Proceeds from redemptions of Trading securities | 54,329 | 79,296 | 123,645 |
Purchases of Fixed-maturity investments available for sale | (1,875,069) | (1,947,916) | (1,990,652) |
Purchases of Equity securities | (69,160) | (213,469) | (830) |
Sales, redemptions and (purchases) of Short-term investments, net | (108,325) | 324,258 | 334,456 |
Sales, redemptions and (purchases) of Other assets and other invested assets, net | 2,590 | 882 | 2,489 |
Net Cash Received (Transferred) In Sale Of Subsidiaries | 0 | (650) | 0 |
Purchases of property and equipment, net | (26,008) | (28,676) | (35,542) |
Acquisitions, net of cash acquired | (7,964) | (86) | (150) |
Net cash provided by (used in) investing activities | (689,414) | (201,492) | (176,058) |
Cash flows from financing activities: | |||
Dividends paid | (2,140) | (2,154) | (2,105) |
Issuance of senior notes, net | 0 | 442,163 | 343,417 |
Purchases and redemptions of senior notes | 0 | (593,527) | (445,072) |
Proceeds from termination of capped calls | 0 | 4,208 | 0 |
Issuance of common stock | 1,385 | 7,132 | 717 |
Purchase of common shares | (50,053) | (6) | (100,188) |
Credit facility commitment fees paid | (1,510) | (1,993) | 0 |
Change in secured borrowings | 39,342 | 19,357 | 0 |
Proceeds from secured borrowings (with terms greater than 3 months) | 56,449 | 0 | 0 |
Payments of secured borrowings (with terms greater than 3 months) | (20,917) | 0 | 0 |
Excess tax benefits from stock-based awards | 0 | 0 | 333 |
Repayment of other borrowings | (170) | (264) | (371) |
Net cash provided by (used in) financing activities | 22,386 | (125,084) | (203,269) |
Effect of exchange rate changes on cash and restricted cash | 0 | 431 | (481) |
Increase (decrease) in cash and restricted cash | 10,758 | 34,430 | 1,916 |
Cash and restricted cash, beginning of period | 96,244 | 61,814 | 59,898 |
Cash and restricted cash, end of period | 107,002 | 96,244 | 61,814 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid (received) | 8,364 | 94,328 | (673) |
Interest paid | $ 56,688 | $ 57,453 | $ 65,531 |
Note 1 - Description of Busines
Note 1 - Description of Business and Recent Developments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business and Recent Developments We are a diversified mortgage and real estate services business, providing both credit-related insurance coverage and other credit risk management solutions, as well as a broad array of mortgage, real estate and title services. We have two reportable business segments—Mortgage Insurance and Services. Mortgage Insurance Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management solutions, to mortgage lending institutions and mortgage credit investors. We provide our mortgage insurance products and services mainly through our wholly-owned subsidiary, Radian Guaranty. Private mortgage insurance plays an important role in the U.S. housing finance system because it promotes affordable home ownership and helps protect mortgage lenders, investors and other beneficiaries by mitigating default-related losses on residential mortgage loans. Generally, these loans are made to home buyers who make down payments of less than 20% of the purchase price for their home or, in the case of refinancings, have less than 20% equity in their home. Private mortgage insurance also facilitates the sale of these low down payment loans in the secondary mortgage market, most of which are currently sold to the GSEs. Our total direct primary mortgage insurance RIF was $56.7 billion as of December 31, 2018 . The GSEs and state insurance regulators impose various capital and financial requirements on our insurance subsidiaries. These include Risk-to-capital, other risk-based capital measures and surplus requirements, as well as the PMIERs financial requirements discussed below. Failure to comply with these capital and financial requirements may limit the amount of insurance that our mortgage insurance subsidiaries may write or prohibit our mortgage insurance subsidiaries from writing insurance altogether. The GSEs and state insurance regulators also possess significant discretion with respect to our mortgage insurance subsidiaries and all aspects of their business. See Note 19 for additional regulatory information. PMIERs. In order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. At December 31, 2018 , Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the PMIERs financial requirements. The PMIERs financial requirements require that a mortgage insurer’s Available Assets meet or exceed its Minimum Required Assets. The GSEs may amend the PMIERs at any time, and they have broad discretion to interpret the requirements, which could impact the calculation of Radian Guaranty’s Available Assets and/or Minimum Required Assets. The PMIERs are comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer, including internal risk management and quality controls, the relationship between the GSEs and the approved insurer, as well as the approved insurer’s financial condition. In addition, the GSEs have a broad range of consent rights under the PMIERs and require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include entering into various intercompany agreements and commuting or reinsuring risk, among others. If Radian Guaranty is unable to satisfy the requirements set forth in the PMIERs, the GSEs could restrict it from conducting certain types of business with them or take actions that may include not purchasing loans insured by Radian Guaranty. From time to time, we enter into reinsurance transactions as a component of our long-term risk distribution strategy to manage our capital position and risk profile, which includes managing Radian Guaranty’s capital position under the PMIERs financial requirements. The credit that we receive under the PMIERs financial requirements for these transactions is subject to initial and ongoing review by the GSEs. Services Our Services segment is primarily a fee-for-service business that offers a broad array of services to market participants across the mortgage and real estate value chain. These services comprise mortgage services, real estate services and title services, including technology and turn-key solutions, that provide information and other resources used to originate, evaluate, acquire, securitize, service and monitor residential real estate and loans secured by residential real estate. These services are primarily provided to mortgage lenders, financial institutions, investors and government entities. In addition, we provide title insurance to mortgage lenders as well as directly to borrowers. Our mortgage services help loan originators and investors evaluate, acquire, surveil and securitize mortgages. These services include loan review, RMBS securitization and distressed asset reviews, review and valuation services related to single family rental properties, servicer and loan surveillance and underwriting. Our real estate services help lenders, investors and real estate agents evaluate, manage, monitor and sell properties. These real estate services include software as a service solutions and platforms, as well as managed services, such as REO asset management, real estate valuation services and real estate brokerage services. Our title services provide a comprehensive suite of title insurance products, title settlement services and both traditional and digital closing services. 2018 Developments Capital and Liquidity Actions . On August 9, 2017, Radian Group’s board of directors authorized the Company to repurchase up to $50 million of its common stock. The Company completed this program during the first half of 2018 by purchasing 3.0 million shares at an average price of $16.56 per share, including commissions. On August 16, 2018, Radian Group’s board of directors approved a new share repurchase program that authorizes the Company to repurchase up to $100 million of its common stock in the open market or in privately negotiated transactions until expiration of the program on July 31, 2019. As of December 31, 2018, the full purchase authority of up to $100 million remained available under this program. See Note 15 for additional information. Reinsurance. As part of Radian’s long-term risk distribution strategy, in November 2018, Radian Guaranty entered into a fully collateralized reinsurance agreement with Eagle Re, an unaffiliated special purpose reinsurer domiciled in Bermuda. This reinsurance agreement provides for up to $434.0 million of aggregate excess-of-loss reinsurance coverage for the applicable percentage of mortgage insurance losses on new defaults on an existing portfolio of eligible Monthly Premium Policies issued between January 1, 2017 and January 1, 2018, with an initial RIF of $9.1 billion . In addition, Radian Guaranty entered into a separate excess-of-loss reinsurance agreement for up to $21.4 million of coverage, representing a pro rata share of the credit risk alongside the risk assumed by Eagle Re on those Monthly Premium Policies. See Note 8 for additional information. IRS Matter. Radian finalized a settlement with the IRS which resolved the issues and concluded all disputes related to the IRS Matter. In the three-month period ended June 30, 2018, we recorded tax benefits of $73.6 million , which includes both the impact of the settlement with the IRS as well as the reversal of certain previously accrued state and local tax liabilities. In 2018, under the terms of the settlement, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. See Note 10 for additional information. Restructuring and Other Exit Costs . As a result of the Company’s continued implementation of its 2017 plan to restructure the Services business, for the year ended December 31, 2018, pretax restructuring charges of $2.5 million were recognized, which include $2.0 million in cash expenses. For the year ended December 31, 2017, pretax restructuring charges of $17.3 million were recognized, including $6.8 million of cash expenses. This initiative was completed during 2018 and, for the two-year period ending December 31, 2018, we recognized total restructuring charges of $19.8 million , consisting of: (i) asset impairment charges (including the loss recognized on the sale of our EuroRisk business) of $10.8 million ; (ii) employee severance and benefit costs of $7.4 million ; (iii) facility and lease termination costs of $1.3 million ; and (iv) contract termination and other restructuring costs of $0.3 million . See Note 7 for additional information, including the events that led to the restructuring plan. We review assets for impairment in accordance with the accounting guidance for long-lived assets. As part of this assessment, during 2018, we incurred $3.6 million |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation Our consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. We refer to Radian Group Inc. together with its consolidated subsidiaries as “Radian,” the “Company,” “we,” “us” or “our,” unless the context requires otherwise. We generally refer to Radian Group Inc. alone, without its consolidated subsidiaries, as “Radian Group.” Unless otherwise defined in this report, certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Reserve for Losses and LAE We establish reserves to provide for losses and LAE, which include the estimated costs of settling claims in our Mortgage Insurance segment, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. Estimating our loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. For example, our mortgage insurance loss reserves generally increase as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Commutations and other negotiated terminations of our insured risks in our Mortgage Insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history, and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default and type of insurance (i.e., primary or pool). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. With respect to new defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma received from September 2017 through February 2018, we assume a lower gross Default to Claim Rate than for new defaults with similar characteristics from other areas, due to our expectations based on past experience with other natural disasters, that a significant portion of these defaults will not result in claims. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments in the ordinary course. Although we believe that our Loss Mitigation Activities are justified under our policies, certain challenges have resulted in disputes and litigation, which if resolved unfavorably to us, could require us to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 11 for additional information. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default unless a reserve for premium deficiency is required. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “— Reserve for Premium Deficiency” below for an exception to this general principle. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions, Claim Denials and Claim Curtailments that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a Claim Denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. The impact to our reserve due to estimated future Loss Mitigation Activities incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our insurance written in years prior to and including 2008. The level of Rescissions, Claim Denials and Claim Curtailments has been declining in recent periods as our defaults related to insurance written in years prior to and including 2008 continue to decline, and we expect this trend to continue. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim Curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed Rescissions, Claim Denials and Claim Curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial, Claim Curtailments and Claim Severity estimates, which are based on historical trends, as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends and determines how they should be considered in its reserve estimates. Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. As of December 31, 2018 and 2017, the combination of the net present value of our expected future premiums and existing reserves (net of reinsurance recoverables) significantly exceeded the net present value of our future expected losses and expenses associated with our first lien mortgage insurance portfolio. Our second-lien PDR is recorded as a component of other liabilities. Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. Available for sale securities, trading securities, equity securities and certain other assets are recorded at fair value as described in Note 5 . All changes in fair value of trading securities, equity securities (effective January 1, 2018) and certain other assets are included in our consolidated statements of operations. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss) . Insurance Premiums—Revenue Recognition Mortgage insurance premiums written on an annual or multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premium s written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written on an annual or multi-year basis are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is expensed in proportion to estimated gross profits over the estimated life of the policies. Ceding commissions received under our reinsurance arrangements related to these costs are also deferred and accounted for using similar assumptions. See Notes 8 and 9 for additional details. Estimates of expected gross profit, including the Persistency Rate and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. Revenue Recognition—Services The FASB has issued an update to the accounting standard regarding revenue recognition, Revenue from Contracts with Customers , which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts with customers to provide services. We adopted this update effective January 1, 2018, using the modified retrospective approach. The principle of this update requires an entity to recognize revenue representing the transfer of services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services, recognized as the performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to the new standard as this update did not change revenue recognition principles related to our investments and insurance products, which together represented the majority of our total revenue for 2018 and are subject to other GAAP guidance discussed elsewhere within our disclosures. This update is primarily applicable to revenues from our Services segment. See Note 1 “— Services ” for information about the services we offer. The table below represents the disaggregation of Services revenues by revenue type: Year Ended December 31, (In thousands) 2018 2017 2016 Services segment revenue Mortgage Services $ 80,314 $ 83,405 $ 102,244 Real Estate Services 58,874 55,095 58,056 Title Services 10,263 23,333 16,949 Total (1) $ 149,451 $ 161,833 $ 177,249 ______________________ (1) Includes inter-segment revenues of $3.2 million , $6.7 million , and $8.4 million in 2018 , 2017 and 2016 , respectively. For 2018, amounts exclude $7.7 million of Services segment net premiums earned—insurance and net investment income, as both are excluded from the scope of the revenue recognition standard. See Note 4 for segment information. Our Services segment revenues are recognized over time and measured each period based on the progress to date as services are performed and made available to customers. Our contracts with customers, including payment terms, are generally short-term in nature; therefore, any impact related to timing is immaterial. Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Revenue recognized related to services performed and not yet billed is recorded in unbilled receivables and reflected in other assets. We have no material bad-debt expense. The following represents balances related to Services contracts as of the dates indicated: (In thousands) December 31, 2018 December 31, 2017 Accounts Receivable - Services Contracts $ 15,461 $ 17,391 Unbilled Receivables - Services Contracts 19,917 22,257 Deferred Revenues - Services Contracts 3,204 3,235 Revenue expected to be recognized in any future period related to remaining performance obligations, such as contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. Fee-for-Service Contracts Generally, our contracts with our clients do not include minimum volume commitments and can be terminated at any time by our clients. Although some of our contracts and assignments are recurring in nature, and include repetitive monthly assignments, a significant portion of our engagements are transactional in nature and may be performed in connection with securitizations, loan sales, loan purchases or other transactions. Due to the transactional nature of our business, our Services segment revenues may fluctuate from period to period as transactions are commenced or completed. We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs, because we do not take control of the service prior to the client taking control. We record an expense if an advance is made by us that is not in accordance with a client contract, and the client is not obligated to reimburse us. Due to the nature of the services provided, our Services arrangements with customers may include any of the following three basic types of contracts: Fixed-Price Contracts. We use fixed-price contracts in our real estate valuation and component services, our loan review, underwriting and due diligence services as well as our title and closing services. We also use fixed-price contracts in our surveillance business for our servicer oversight services and RMBS surveillance services, and in our asset management business activities. Under fixed-price contracts we agree to perform the specified services and deliverables for a pre-determined per-unit or per-file price or day rate. Each service qualifies as a separate performance obligation and revenue is recognized as the service performed is made available to the client. Time-and-Expense Contracts. The Services segment also derives a portion of its revenue from professional service activities under time-and-expense contracts. In these types of contracts, we are paid a fixed hourly rate, and we are reimbursed for billable out-of-pocket expenses as work is performed. These contracts are used in our loan review, underwriting and due diligence services. Services revenue consisting of billed time fees and pass-through expenses is recorded over time and based on the progress to date as services are performed and made available to customers. Services revenue may also include expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. Percentage-of-Sale Contracts. Under percentage-of-sale contracts, we are paid a contractual percentage of the sale proceeds upon the sale of each property. These contracts are only used for a portion of our REO management services and our real estate brokerage services. In addition, through the use of our proprietary technology, property leads are sent to select clients. Revenue attributable to services provided under a percentage-of-sale contract is recognized over time and measured based on the progress to date and typically coincides with the client’s successful closing on the property. The revenue recognized for these transactions is based on a percentage of the sale. In certain instances, fees are received at the time that an asset is assigned to Radian for management. These fees are recorded as deferred revenue and are recognized over time based on progress to date and the availability to customers. Cost of Services Cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients in our Services segment. Cost of services also includes costs paid to outside vendors, including real estate agents that provide valuation and related services, as well as data acquisition costs and other compensation-related expenses to maintain software application platforms that directly support our businesses. Cost of services does not include an allocation of overhead costs. Title Insurance – Premiums and Reserve for Losses and LAE Title insurance premiums are typically due and earned in full when the real estate transaction is closed. Premiums generally are calculated with reference to the policy amount. The premium charged by a title insurer or an agent is subject to regulation in most areas. Such regulations vary from state to state. We provide for losses associated with title insurance policies, closing protection letters and other risk-based products based upon our historical experience and other factors by a charge to expense when the related premium revenue is recognized. The resulting reserve for IBNR claims, together with the reserve for known claims, reflects management’s best estimate of the total costs required to settle all incurred claims, and are considered to be adequate for such purpose. Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. In regards to accumulated other comprehensive income, the Company’s policy for releasing disproportionate income tax effects is to release the effects as individual items are sold. We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2018 and 2017. When estimating our full year 2018 and 2017 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for as Discrete Items at the applicable federal tax rate. On December 22, 2017, the TCJA was enacted into law. We were required to recognize the accounting effects of the TCJA in the period of enactment, including remeasuring our deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” which provides guidance on accounting for the tax effects of the TCJA for which the accounting was incomplete. To the extent that a company’s accounting for certain income tax effects of the TCJA was incomplete but a reasonable estimate could be made, a company was required to record provisional estimates in the financial statements, during a measurement period not to extend beyond one year of the enactment date. Since the TCJA was passed late in the fourth quarter of 2017, we accounted for the tax effects of the TCJA on a provisional basis and determined reasonable estimates for those effects, which were included in our financial statements as of December 31, 2017. As a result of finalizing our interpretation of related guidance, we completed our accounting in the fourth quarter of 2018 during the one-year measurement period from the enactment date. No material adjustments to our provisional amounts were required. Risks and Uncertainties Radian Group and its subsidiaries are subject to risks and uncertainties that could affect amounts reported in our financial statements in future periods. Our future performance and financial condition are subject to significant risks and uncertainties that could cause actual results to be materially different from our estimates and forward-looking statements. Foreign Currency Revaluation/Translation Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. Cash and Restricted Cash Included in our restricted cash balances as of December 31, 2018 were: (i) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (ii) funds held in trust for the benefit of certain policyholders; (iii) escrow funds held for servicer liabilities; and (iv) escrow funds held for title services obligations. Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2018 of $107.0 million comprise cash and restricted cash of $95.4 million and $11.6 million , respectively, as shown on the consolidated balance sheet as of December 31, 2018 . Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2017 of $96.2 million comprise cash and restricted cash of $80.5 million and $15.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2017 . Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. Because our investment activity for trading securities relates to overa |
Note 3 - Net Income Per Share
Note 3 - Net Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and the weighted-average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements and our outstanding convertible senior notes, if any. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. The calculation of basic and diluted net income per share was as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except per-share amounts) Net income — basic $ 606,011 $ 121,088 $ 308,253 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) — (215 ) 5,816 Net income — diluted $ 606,011 $ 120,873 $ 314,069 Average common shares outstanding — basic 214,267 215,321 211,789 Dilutive effect of Convertible Senior Notes due 2017 — 323 207 Dilutive effect of Convertible Senior Notes due 2019 — 457 14,263 Dilutive effect of stock-based compensation arrangements (2) 4,286 4,305 2,999 Adjusted average common shares outstanding—diluted 218,553 220,406 229,258 Net income per share: Basic $ 2.83 $ 0.56 $ 1.46 Diluted $ 2.77 $ 0.55 $ 1.37 ______________________ (1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. Included in the year ended December 31, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Year Ended December 31, (In thousands) 2018 2017 2016 Shares of common stock equivalents 337 353 1,042 |
Note 4 - Segment Reporting Leve
Note 4 - Segment Reporting Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Reporting We have two strategic business units that we manage separately—Mortgage Insurance and Services. Adjusted pretax operating income (loss) for each segment represents segment results on a standalone basis; therefore, inter-segment eliminations and reclassifications required for consolidated GAAP presentation have not been reflected. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment; (ii) all interest expense (except for interest expense related to an intercompany note with terms consistent with the original issued amount of $300 million from the Senior Notes due 2019 that were used to fund our purchase of Clayton, all of which is allocated to our Services segment); and (iii) all corporate cash and investments. We allocate to our Services segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment and (ii) the allocated interest expense related to the intercompany note as described above. No corporate cash or investments are allocated to the Services segment. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. Contract underwriting activities are reported within our Services segment. We include underwriting-related expenses for mortgage insurance, based on a pro-rata volume of mortgage applications excluding third-party contract underwriting services, in our Mortgage Insurance segment’s other operating expenses before corporate allocations. We include underwriting-related expenses for third-party contract underwriting services, based on a pro-rata volume of mortgage applications, in our Services segment’s cost of services and other operating expenses before corporate allocations, as applicable. Adjusted Pretax Operating Income (Loss) Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, loss on induced conversion and debt extinguishment, acquisition-related expenses, amortization or impairment of goodwill and other acquired intangible assets, and net impairment losses recognized in earnings and losses from the sale of lines of business. Although adjusted pretax operating income excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income. These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt and losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, we do not view these activities as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss). (4) Amortization or impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss). (5) Net impairment losses recognized in earnings and losses from the sale of lines of business . The recognition of net impairment losses on investments and the impairment of other long-lived assets does not result in a cash payment and can vary significantly in both amount and frequency, depending on market credit cycles and other factors. Losses from the sale of lines of business are highly discretionary as a result of strategic restructuring decisions, and generally do not occur in the normal course of our business. We do not view these losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss). Summarized operating results for our segments as of and for the years ended, as applicable, were as follows: December 31, 2018 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) $ 991,021 $ 7,286 (2) $ 998,307 (Increase) decrease in unearned premiums 15,700 — (2) 15,700 Net premiums earned—insurance 1,006,721 7,286 (2) 1,014,007 Services revenue — 148,217 148,217 Net investment income 152,102 373 (2) 152,475 Other income 2,794 1,234 (2) 4,028 Total (3) (4) 1,161,617 157,110 1,318,727 Provision for losses 104,547 408 (2) 104,955 Policy acquisition costs 25,265 — 25,265 Cost of services — 98,692 98,692 Other operating expenses before corporate allocations 135,372 53,250 188,622 Restructuring and other exit costs (5) — 2,100 2,100 Total (4) 265,184 154,450 419,634 Adjusted pretax operating income (loss) before corporate allocations 896,433 2,660 899,093 Allocation of corporate operating expenses 80,134 11,974 92,108 Allocation of interest expense 43,685 17,805 61,490 Adjusted pretax operating income (loss) $ 772,614 $ (27,119 ) $ 745,495 Total assets $ 6,138,679 $ 175,973 $ 6,314,652 ______________________ (1) Net of ceded premiums written under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. See Note 8 for additional information. (2) Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement service company, acquired in March 2018. (3) Excludes net losses on investments and other financial instruments of $42.5 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2018 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 3,245 Inter-segment expenses included in Mortgage Insurance segment 3,245 — (5) Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. December 31, 2017 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) (2) $ 818,417 $ — $ 818,417 (Increase) decrease in unearned premiums (2) 114,356 — 114,356 Net premiums earned—insurance 932,773 — 932,773 Services revenue — 161,833 161,833 Net investment income 127,248 — 127,248 Other income 2,886 — 2,886 Total (3) (4) 1,062,907 161,833 1,224,740 Provision for losses 136,183 — 136,183 Policy acquisition costs 24,277 — 24,277 Cost of services — 105,812 105,812 Other operating expenses before corporate allocations 150,975 50,969 201,944 Restructuring and other exit costs (5) — 6,828 6,828 Total (4) 311,435 163,609 475,044 Adjusted pretax operating income (loss) before corporate allocations 751,472 (1,776 ) 749,696 Allocation of corporate operating expenses 55,441 14,319 69,760 Allocation of interest expense 45,016 17,745 62,761 Adjusted pretax operating income (loss) $ 651,015 $ (33,840 ) $ 617,175 Total assets $ 5,733,918 $ 166,963 (6) $ 5,900,881 ______________________ (1) Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. (3) Excludes net gains on investments and other financial instruments of $3.6 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 6,730 Inter-segment expenses included in Mortgage Insurance segment 6,730 — (5) Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. (6) The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other acquired intangible assets. See Note 7 for further details. December 31, 2016 Mortgage Insurance Services Total (In thousands) Net premiums written—insurance (1) $ 733,834 $ — $ 733,834 (Increase) decrease in unearned premiums 187,935 — 187,935 Net premiums earned—insurance 921,769 — 921,769 Services revenue — 177,249 177,249 Net investment income 113,466 — 113,466 Other income 3,572 — 3,572 Total (2) (3) 1,038,807 177,249 1,216,056 Provision for losses 204,175 — 204,175 Policy acquisition costs 23,480 — 23,480 Cost of services — 115,369 115,369 Other operating expenses before corporate allocations 140,624 55,815 196,439 Total (3) 368,279 171,184 539,463 Adjusted pretax operating income (loss) before corporate allocations 670,528 6,065 676,593 Allocation of corporate operating expenses 45,178 8,533 53,711 Allocation of interest expense 63,439 17,693 81,132 Adjusted pretax operating income (loss) $ 561,911 $ (20,161 ) $ 541,750 Total assets 5,506,338 356,836 5,863,174 ______________________ (1) Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $30.8 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2016 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 8,355 Inter-segment expenses included in Mortgage Insurance segment 8,355 — The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income is as follows: December 31, (In thousands) 2018 2017 2016 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 772,614 $ 651,015 $ 561,911 Services (1) (27,119 ) (33,840 ) (20,161 ) Total adjusted pretax operating income $ 745,495 $ 617,175 $ 541,750 Net gains (losses) on investments and other financial instruments (42,476 ) 3,621 30,751 Loss on induced conversion and debt extinguishment — (51,469 ) (75,075 ) Acquisition-related expenses (2) (881 ) (105 ) (519 ) Impairment of goodwill — (184,374 ) — Amortization and impairment of other acquired intangible assets (12,429 ) (27,671 ) (13,221 ) Impairment of other long-lived assets (3) (5,523 ) (10,440 ) — Consolidated pretax income $ 684,186 $ 346,737 $ 483,686 ______________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. (3) For the year ended December 31, 2018, this item comprises other operating expenses of $1.5 million and restructuring and other exit costs of $4.0 million , each as included in the consolidated statement of operations. For the year ended December 31, 2017, the full amount is included in restructuring and other exit costs in the consolidated statement of operations. See Note 1 . On a consolidated basis, “adjusted pretax operating income” is a measure not determined in accordance with GAAP. Total adjusted pretax operating income is not a measure of total profitability, and therefore should not be considered in isolation or viewed as a substitute for GAAP pretax income. Our definition of adjusted pretax operating income may not be comparable to similarly-named measures reported by other companies. Concentration of Risk As of December 31, 2018 , California is the only state that accounted for more than 10% of our mortgage insurance business measured by primary RIF. California accounted for 12.3% of our Mortgage Insurance segment’s primary RIF at December 31, 2018 , compared to 12.4% at December 31, 2017 . California accounted for 11.9% of our Mortgage Insurance segment’s direct primary NIW for the year ended December 31, 2018 , compared to 14.1% and 14.8% for the years ended December 31, 2017 and 2016 , respectively. There was no single mortgage insurance customer that accounted for more than 10% of NIW or more than 10% of our consolidated revenues (excluding net gains (losses) on investments and other financial instruments) in 2018 , 2017 or 2016 . |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value of Financial Instruments The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2018 : December 31, 2018 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 199,302 $ 28,412 $ 227,714 State and municipal obligations — 324,742 324,742 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 2,564,068 2,564,068 RMBS — 353,224 353,224 CMBS — 591,393 591,393 Other ABS — 705,468 705,468 Equity securities 136,662 3,958 140,620 Other investments (1) — 175,113 175,113 Total Investments at Fair Value (2) 431,096 4,746,378 5,177,474 (3) Total Assets at Fair Value (4) $ 431,096 $ 4,746,378 $ 5,177,474 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.4 million that is primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (3) Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our consolidated balance sheet. See Note 8 for more information. The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2017 : December 31, 2017 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 124,969 $ 8,023 $ 132,992 State and municipal obligations — 386,111 386,111 Money market instruments 213,357 — 213,357 Corporate bonds and notes — 2,304,017 2,304,017 RMBS — 216,749 216,749 CMBS — 503,955 503,955 Other ABS — 676,158 676,158 Foreign government and agency securities — 36,448 36,448 Equity securities 175,205 860 176,065 Other investments (1) — 25,720 25,720 Total Investments at Fair Value (2) 513,531 4,158,041 4,671,572 (3 ) Total Assets at Fair Value $ 513,531 $ 4,158,041 $ 4,671,572 (3 ) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $0.3 million , primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements of $19.4 million reinvested in money market instruments. (3) Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. At December 31, 2018 and 2017 , there were no material Level III assets measured at fair value, and no Level III liabilities. There were no investment transfers to or from Level III for the years ended December 31, 2018 and 2017 . Activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the years ended December 31, 2018 and 2017 . Valuation Methodologies for Assets Measured at Fair Value The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value. We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analyses on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) a comparison of pricing services’ valuations to other independent sources; (iii) a review of month-to-month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. U.S. government and agency securities. The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy. State and municipal obligations. The fair value of state and municipal obligations is estimated using recent transaction activity, including market observations. Valuation models are used, which incorporate bond structure, yield curve, credit spreads and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. Money market instruments. The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy. Corporate bonds and notes. The fair value of corporate bonds and notes is estimated using recent transaction activity, including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. RMBS, CMBS, and Other ABS. The fair value of these instruments is estimated based on prices of comparable securities and spreads and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of any Level III securities is generally estimated by discounting estimated future cash flows. Foreign government and agency securities. The fair value of foreign government and agency securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker-dealers. These securities are categorized in Level II of the fair value hierarchy. Equity securities. The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data are readily available. From time to time, certain equity securities may be categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based valuations. Other investments. These securities primarily consist of commercial paper and short-term certificates of deposit, which are categorized in Level II of the fair value hierarchy. The fair value of these investments is estimated using market data for comparable instruments of similar maturity and average yield. Other Fair Value Disclosure The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated: December 31, 2018 December 31, 2017 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets (1) $ — $ — $ 334 $ 3,226 Liabilities: Senior notes 1,030,348 1,007,687 1,027,074 1,093,934 ______________________ (1) As a result of implementing the update to the standard for the accounting of financial instruments effective January 1, 2018, other invested assets, primarily consisting of investments in limited partnerships, are no longer carried at amortized cost, and instead are valued in our consolidated balance sheets using the net asset value as a practical expedient to estimate fair value. Senior Notes. The fair value is estimated based on the quoted market prices for the same or similar instruments. See Note 12 |
Note 6 - Investments Level 1 (N
Note 6 - Investments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | Investments Available for Sale Securities Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2018 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 85,532 $ 84,070 (1) $ 46 $ 1,508 State and municipal obligations 138,022 138,313 2,191 1,900 Corporate bonds and notes 2,288,720 2,229,885 5,053 63,888 RMBS 334,843 332,142 (2) 1,785 4,486 CMBS 546,729 539,915 544 7,358 Other ABS 712,748 704,662 814 8,900 Total securities available for sale 4,106,594 4,028,987 (3) 10,433 88,040 ______________________ (1) Includes securities with a fair value of $10.7 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $77.7 million serving as collateral for FHLB advances. (3) Includes $7.4 million of fixed maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. December 31, 2017 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 69,667 $ 69,396 $ 96 $ 367 State and municipal obligations 156,587 161,722 5,834 699 Corporate bonds and notes 1,869,318 1,894,886 33,620 8,052 RMBS 189,455 187,229 636 2,862 CMBS 451,595 453,394 3,409 1,610 Other ABS 672,715 674,548 2,655 822 Foreign government and agency securities 31,417 32,207 823 33 Total fixed-maturities available for sale 3,440,754 3,473,382 47,073 14,445 Equity securities available for sale (2) 176,349 176,065 1,705 1,989 Total debt and equity securities $ 3,617,103 $ 3,649,447 (1) $ 48,778 $ 16,434 ______________________ (1) Includes $14.7 million of fixed maturity securities and $13.2 million of equity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. (2) Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities. Gross Unrealized Losses and Related Fair Values of Available for Sale Securities For securities deemed “available for sale” and that are in an unrealized loss position, the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of December 31, 2018 , are loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. December 31, 2018 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 2 $ 27,415 $ 796 8 $ 23,476 $ 712 10 $ 50,891 $ 1,508 State and municipal obligations 12 41,263 955 16 39,982 945 28 81,245 1,900 Corporate bonds and notes 330 1,208,430 36,284 126 601,533 27,604 456 1,809,963 63,888 RMBS 15 92,315 782 28 77,395 3,704 43 169,710 4,486 CMBS 62 328,696 3,973 33 125,728 3,385 95 454,424 7,358 Other ABS 129 503,109 7,917 26 89,628 983 155 592,737 8,900 Total 550 $ 2,201,228 $ 50,707 237 $ 957,742 $ 37,333 787 $ 3,158,970 $ 88,040 December 31, 2017 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 6 $ 23,309 $ 129 3 $ 9,799 $ 238 9 $ 33,108 $ 367 State and municipal obligations 21 65,898 699 — — — 21 65,898 699 Corporate bonds and notes 152 672,318 4,601 32 139,105 3,451 184 811,423 8,052 RMBS 8 19,943 204 26 101,812 2,658 34 121,755 2,862 CMBS 35 139,353 1,395 4 3,518 215 39 142,871 1,610 Other ABS 92 260,864 777 7 8,297 45 99 269,161 822 Foreign government and agency securities 5 7,397 33 — — — 5 7,397 33 Equity securities 13 149,785 1,989 — — — 13 149,785 1,989 Total 332 $ 1,338,867 $ 9,827 72 $ 262,531 $ 6,607 404 $ 1,601,398 $ 16,434 Although we held securities in an unrealized loss position as of December 31, 2018 , we did not consider those securities to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2018 were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect to recover the amortized cost basis of these securities. As of December 31, 2018 , we did not have the intent to sell any debt securities in an unrealized loss position and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at December 31, 2018 . Other-than-temporary Impairment Activity. To the extent we determine that a security is deemed to have had an other-than-temporary impairment, an impairment loss is recognized. While we recognized other-than-temporary impairment losses in earnings during the years ended December 31, 2018 , 2017 and 2016 , there were no other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss) for those periods. For the year ended December 31, 2018 , we recorded other-than-temporary impairment losses in earnings of $1.7 million due to our intent to sell certain: (i) corporate bonds and notes and (ii) state and municipal obligations, each with an amortized cost basis greater than their fair value. While we recognized other-than-temporary impairment losses related to our intent to sell securities, there were no credit-related other-than-temporary impairment losses recognized in earnings during the year ended December 31, 2018 . For the year ended December 31, 2017 , we recorded other-than-temporary impairment losses in earnings of $1.4 million . These losses comprised $0.4 million due to our intent to sell certain corporate bonds at a loss and $1.0 million due to credit deterioration, which included $0.5 million related to a convertible note of a non-public company issuer included in debt securities and $0.5 million related to a privately-placed equity security. For the year ended December 31, 2016 , we recorded other-than-temporary impairment losses in earnings of $0.5 million due to our intent to sell certain corporate bonds at a loss. While we recognized other-than-temporary impairment losses related to our intent to sell securities in earnings, there were no credit-related other-than-temporary impairment losses recognized in earnings during the year ended December 31, 2016 . Trading Securities The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: December 31, (In thousands) 2018 2017 Trading securities: State and municipal obligations $ 168,359 $ 214,841 Corporate bonds and notes 228,151 307,271 RMBS 21,083 29,520 CMBS 51,478 50,561 Foreign government and agency securities — 4,241 Total $ 469,071 $ 606,434 (1) ______________________ (1) At December 31, 2017, includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. Securities Lending Agreements During the third quarter of 2017, we commenced participation in a securities lending program whereby we loan certain securities in our investment portfolio to Borrowers for short periods of time. These securities lending agreements are collateralized financing arrangements whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities. However, pursuant to the terms of these agreements, we maintain effective control over all loaned securities. Although we report such securities at fair value within other assets in our consolidated balance sheets, rather than in investments, the detailed information provided in this Note includes these securities. See Notes 2 and 9 for additional information. Under our securities lending agreements, the Borrower is required to provide to us collateral, consisting of cash or securities, in amounts generally equal to or exceeding (i) 102% of the value of the loaned securities ( 105% in the case of foreign securities) or (ii) another agreed-upon percentage not less than 100% of the market value of the loaned securities. Any cash collateral we receive may be invested in liquid assets. The Borrower generally may return the loaned securities to us at any time, which would require us to return the collateral within the standard settlement period for the loaned securities on the principal exchange or market in which the securities are traded. We manage this liquidity risk associated with cash collateral by maintaining the cash collateral in a short-term money-market fund with daily availability. The credit risk under these programs is reduced by the amounts of collateral received. On a daily basis, the value of the underlying securities that we have loaned to the Borrowers is compared to the value of cash and securities collateral we received from the Borrowers, and additional cash or securities are requested or returned, as applicable. In addition, we are indemnified against counterparty credit risk by the intermediary. Key balances related to our securities lending agreements at December 31, 2018 , consisted of the following: (In thousands) December 31, 2018 December 31, 2017 Loaned securities: (1) U.S. government and agency securities $ 9,987 $ — Corporate bonds and notes 7,818 13,862 Foreign government and agency securities — 867 Equity securities 10,055 13,235 Total loaned securities, at fair value $ 27,860 $ 27,964 Total loaned securities, at amortized cost $ 28,992 27,846 Securities collateral on deposit from Borrowers (2) 16,815 9,342 Reinvested cash collateral, at estimated fair value (3) 11,699 19,357 ______________________ (1) Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. (2) Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. (3) All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments in our consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our consolidated balance sheets. Net Investment Income Net investment income consisted of: Year Ended December 31, (In thousands) 2018 2017 2016 Investment income: Fixed-maturities $ 141,552 $ 122,890 $ 115,880 Equity securities 7,157 4,318 86 Short-term investments 10,270 5,453 3,086 Other 976 987 1,161 Gross investment income 159,955 133,648 120,213 Investment expenses (7,480 ) (6,400 ) (6,747 ) Net investment income $ 152,475 $ 127,248 $ 113,466 Net Gains (Losses) on Investments and Other Financial Instruments Net realized and unrealized gains (losses), including impairment losses, on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2018 2017 2016 Net realized gains (losses) on investments: Fixed-maturities available for sale (1) $ (11,256 ) $ (3,014 ) $ 4,160 Trading securities (1,840 ) (5,995 ) (237 ) Equity securities 532 368 (170 ) Short-term investments (10 ) (16 ) (135 ) Other invested assets 414 22 631 Other gains (losses) 66 32 64 Net realized gains (losses) on investments (12,094 ) (8,603 ) 4,313 Other-than-temporary impairment losses (1,744 ) (1,420 ) (526 ) Net unrealized gains (losses) on investment securities (2) (27,287 ) 13,230 27,217 Total net gains (losses) on investments (41,125 ) 3,207 31,004 Net gains (losses) on other financial instruments (1,351 ) 414 (253 ) Net gains (losses) on investments and other financial instruments $ (42,476 ) $ 3,621 $ 30,751 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31, (In thousands) 2018 2017 2016 Gross investment gains from sales and redemptions $ 1,986 $ 6,052 $ 10,326 Gross investment losses from sales and redemptions (13,242 ) (9,066 ) (6,166 ) (2) These amounts include unrealized gains (losses) on investment securities other than securities available for sale. For 2017 and 2016, the unrealized gains (losses) on investments exclude the net change in unrealized gains and losses on equity securities. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income. Net Unrealized Gains (Losses) on Investment Securities For each period indicated, the net change in unrealized gains (losses) on investment securities shown below represents a component of net gains (losses) on investments and other financial instruments. The net change in unrealized gains (losses) on trading securities and equity securities that were still held at each period end were as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Net changes in unrealized gains (losses): Trading securities $ (16,462 ) $ 8,827 $ 16,850 Equity securities (1) (8,886 ) — — Net changes in unrealized gains (losses) on investment securities $ (25,348 ) $ 8,827 $ 16,850 ______________________ (1) Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income. Change in Unrealized Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, (In thousands) 2018 2017 2016 Fixed-maturities: Unrealized holding gains (losses) arising during the period, net of tax $ (97,356 ) $ 32,147 $ 8,822 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (10,270 ) (2,556 ) 2,361 Net unrealized gains (losses) on investments, net of tax $ (87,086 ) $ 34,703 $ 6,461 Equities (1) : Unrealized holding gains (losses) arising during the period, net of tax $ — $ (244 ) $ (40 ) Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax — (86 ) (110 ) Net unrealized gains (losses) on investments, net of tax $ — $ (158 ) $ 70 ______________________ (1) Prior to our implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income. Effective January 1, 2018, we measure our equity investments at fair value, with changes in fair value recognized in net income. Contractual Maturities The contractual maturities of fixed-maturity investments available for sale as follows: December 31, 2018 (In thousands) Amortized Fair Due in one year or less $ 56,350 $ 56,067 Due after one year through five years (1) 933,807 920,173 Due after five years through ten years (1) 1,142,145 1,107,129 Due after ten years (1) 379,972 368,899 RMBS (2) 334,843 332,142 CMBS (2) 546,729 539,915 Other ABS (2) 712,748 704,662 Total (3) $ 4,106,594 $ 4,028,987 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. (3) Available for sale includes securities loaned under securities lending agreements with a fair value of $7.4 million . Other As of December 31, 2018 and 2017 , our investment portfolio included no securities of countries that have obligations that have been under particular stress due to economic uncertainty, potential restructuring and ratings downgrades. For the years ended December 31, 2018 , 2017 and 2016 , we did not sell or transfer any fixed-maturity investments classified as held to maturity. For the years ended December 31, 2018 , 2017 and 2016 , we did not transfer any securities from the available for sale or trading categories. As of December 31, 2018 , we did not have any investment in any person (including affiliates thereof) that exceeded 10% of our total stockholders’ equity. As of December 31, 2018 , Radian had an aggregate amount of $88.4 million of U.S. government and agency securities and RMBS, classified as fixed-maturities available for sale within our investment securities portfolio, serving as collateral for our FHLB advances. There were no FHLB advances outstanding at December 31, 2017 . See Note 13 for additional information. Our investments include securities on deposit with various state insurance commissioners of $17.6 million and $11.8 million at December 31, 2018 and 2017 |
Note 7 - Goodwill and Other Acq
Note 7 - Goodwill and Other Acquired Intangible Assets, Net (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Acquired Intangible Assets, Net All of our goodwill and other acquired intangible assets relate to our Services segment. The following table shows the changes in the carrying amount of goodwill as of and for the years ended December 31, 2018 and 2017 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2016 $ 197,265 $ (2,095 ) $ 195,170 Goodwill acquired 126 — 126 Impairment losses — (184,374 ) (184,374 ) Balance at December 31, 2017 197,391 (186,469 ) 10,922 Goodwill acquired 3,170 — 3,170 Balance at December 31, 2018 $ 200,561 $ (186,469 ) $ 14,092 The following is a summary of the gross and net carrying amounts and accumulated amortization of our other acquired intangible assets as of the periods indicated: December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) (1) $ 35,773 Technology 17,362 (13,141 ) (2) 4,221 Trade name and trademarks 8,340 (3,864 ) 4,476 Non-competition agreements 185 (177 ) 8 Licenses 463 (35 ) 428 Total $ 110,350 $ (65,444 ) $ 44,906 December 31, 2017 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 82,530 $ (41,596 ) (1) $ 40,934 Technology 15,250 (8,922 ) (2) 6,328 Trade name and trademarks 8,340 (3,003 ) 5,337 Client backlog 6,680 (6,006 ) 674 Non-competition agreements 185 (168 ) 17 Total $ 112,985 $ (59,695 ) $ 53,290 ______________________ (1) Includes an impairment charge of $14.9 million in the quarter ended June 30, 2017. (2) Includes an impairment charge of $0.9 million in the quarter ended June 30, 2017. For the years ended December 31, 2018 , 2017 and 2016 , amortization expense was $12.4 million , $11.8 million and $13.2 million , respectively. The estimated aggregate expense for 2019 and thereafter is as follows: (In thousands) 2019 $ 8,688 2020 7,321 2021 5,907 2022 5,375 2023 4,923 Thereafter 12,692 Total $ 44,906 Accounting Policy Considerations Goodwill is an asset representing the estimated future economic benefits arising from the assets we have acquired that are not individually identified and separately recognized, and includes the value of the discounted expected future cash flows from these businesses, the workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever events and circumstances indicate potential impairment. In the second quarter of 2017, we elected to early adopt the update to the accounting standard regarding goodwill and other intangibles, as discussed in Note 2 . In accordance with the updated standard, our goodwill impairment test is a two-step process. Step one compares a reporting unit’s estimated fair value to its carrying value. If the carrying amount exceeds the estimated fair value, the second step must be completed to measure the amount of the reporting unit’s goodwill impairment loss, if any. Any excess of the reporting unit’s carrying amount over its estimated fair value is recognized as an impairment charge, up to the full amount of the goodwill allocated to the reporting unit, after adjusting the carrying value for any impairment of other intangibles or long-lived assets. For purposes of performing our goodwill impairment test, we have concluded that the Services segment constitutes one reporting unit to which all of our recorded goodwill is related. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. However, if there are events and circumstances that indicate that it is more likely than not that the fair value of a reporting unit is less than the carrying amount, we will perform additional analysis on an interim basis. As part of our goodwill impairment assessment, we estimate the fair value of the reporting unit using primarily an income approach and, at a lower weighting, a market approach. The key driver in our fair value analysis is forecasted future cash flows. For financial reporting purposes, other acquired intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: Estimated Useful Life Client relationships 5 years - 15 years Technology 3 years - 8 years Trade name and trademarks 6 years - 10 years Licenses 10 years Non-competition agreements 2 years - 3 years For additional information on our accounting policies for goodwill and other acquired intangible assets, see Note 2 . Impairment Analysis 2018 Activity Goodwill. We conducted our annual goodwill impairment analysis in the fourth quarter of 2018. Although the goodwill associated with our fourth quarter 2018 acquisitions is included in our goodwill as of December 31, 2018, these recent acquisitions were excluded from our impairment analysis as of the measurement date. As part of our annual goodwill impairment assessment in 2018, we estimated the fair value of the reporting unit using primarily an income approach and, to a lesser extent, a market approach. The key factor in our fair value analysis was forecasted future cash flows, which were less than originally had been expected at the acquisition date. We considered both positive and negative factors and concluded that, after considering all of the factors and evidence available, there is no impairment of goodwill as of December 31, 2018 because the estimated fair value of the reporting unit exceeded our carrying amount. Other Acquired Intangible Assets . As of December 31, 2018, we also evaluated the recoverability of our other acquired intangible assets. Factors affecting the estimated fair value of our goodwill, as described above, were also considered in estimating the recoverability of our other acquired intangible assets. Based on our analysis, there was no impairment indicated for other acquired intangible assets, as the carrying amounts were estimated to be recoverable from future cash flows. As of December 31, 2018, the balance of client relationships and technology includes recently acquired assets from our fourth quarter 2018 acquisitions. These recently acquired assets were excluded from our recoverability analysis. 2017 Activity Goodwill. We performed an interim goodwill impairment test as of June 30, 2017, due to events and circumstances identified during our June 30, 2017 qualitative analysis that indicated that it was more likely than not that the fair value was less than the carrying amount. We performed our qualitative assessment of goodwill at June 30, 2017, focusing on the impact of certain key factors affecting our Services segment, including: (i) decisions related to changes in the business strategy for our Services segment determined in the second quarter of 2017, following our Chief Executive Officer’s evaluation of both existing products and new product development opportunities and (ii) second quarter 2017 results for our Services segment which were negatively impacted by market trends. Our expectation that these market trends would persist negatively impacted our projected future cash flows compared to the projections used in our prior valuation. Our Chief Executive Officer joined Radian in March 2017 and initiated a review to evaluate the strategic direction of the Services segment. Based on this strategic review, in the second quarter of 2017, we made several decisions with respect to business strategy for the segment in order to reposition the Services business to drive future growth and profitability. We determined to: (i) discontinue certain initiatives, as discussed below and (ii) shift the strategy of the Services segment to focus on core products and services that, in the current market environment, are expected to have higher growth potential, to produce more predictable, recurring revenue streams over time and to better align with our market expertise and the needs of our customers. Our strategic decisions included an intent to scale back or, in certain cases, discontinue certain planned or existing initiatives, such as discontinuing a new product line which, based on a market study received in the second quarter of 2017, would have required significant additional investment to achieve the growth rates that had been expected. The impact of the strategic decisions determined during the second quarter resulted in a meaningful reduction in the fair value of the Services segment since the previous annual impairment test. During the second quarter of 2017, the Services segment performed below forecasted levels. In combination with the recent underperformance of the Services segment, the anticipated business and growth opportunities for certain business lines in our Services segment had been impacted by: (i) market demand, which was lower than anticipated; (ii) increased competition, including with respect to product alternatives and pricing; and (iii) delays in the realization of efficiencies and margin improvements associated with certain technology initiatives. The demand for certain products and services had decreased due to several factors. Given the decreased volume of refinancings in the mortgage market that began in the first half of 2017, our customers had excess internal capacity which they were choosing to utilize and as a result they were less reliant on outsourcing to us. Additionally, due to market and competitive pressures, we renewed the contract terms with one of our largest customers during the second quarter of 2017, with lower pricing and volumes than expected in order to retain the engagement. We also experienced lower than expected customer acceptance for certain of our current and proposed products and services. The impact of these factors, partially offset by related future expense reductions, constituted a majority of the decline in the fair value of the Services segment since the previous annual impairment test. Our quantitative valuation analysis, performed in connection with our annual goodwill impairment analysis in 2016, relied heavily on achieving the growth rates in our projected future cash flows. The impact of the market trends observed during the second quarter of 2017, which we expected to continue, together with our strategic decisions discussed above, resulted in changes to our expected product mix and the expected growth rates associated with various initiatives, which in turn generated material reductions to our forecasted net cash flows. Given the significant negative impact that the market trends and our strategic decisions would have on the timing and amount of our projected future cash flows in comparison to our original projections, we performed a quantitative analysis of the associated goodwill and other acquired intangible assets as of June 30, 2017. As a result of the quantitative goodwill analysis, we recorded an impairment charge of $184.4 million for the three months ended June 30, 2017, to reduce the carrying amount of the Services segment to its estimated fair value. As discussed further below, prior to finalizing this amount, we also evaluated the recoverability of the segment’s other acquired intangible assets and recorded impairment charges of $15.8 million related to the Services segment’s other acquired intangible assets. See “— Other Acquired Intangible Assets ,” below. Substantially all of our goodwill and other acquired intangible assets will continue to be deductible for tax purposes in accordance with the originally scheduled amortization period of approximately 15 years . During the fourth quarter of 2017, we elected to perform a qualitative annual goodwill impairment analysis, which requires us to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the reporting unit. We considered factors such as: (i) the increase in and timing of revenues during the third and fourth quarters of 2017 (as compared to the forecasted amounts for the same periods); (ii) the impact to projected cash flows, a significant input used to determine the fair value of the reporting unit, associated with the TCJA enacted in the fourth quarter of 2017; (iii) our recent interim goodwill impairment test and recognition of impairment charges; and (iv) the recent sale of a business line. Based on our qualitative assessment in the fourth quarter of 2017, we concluded that it was not “more likely than not” that the fair value of the Services reporting unit was less than its carrying amount as of December 31, 2017. O ther Acquired Intangible Assets. As of June 30, 2017, we evaluated the recoverability of our other acquired intangible assets. Factors affecting the estimated fair value of our goodwill, as described above, also affected the estimated recoverability of our other acquired intangible assets. Based on our analysis in the second quarter of 2017, impairment was indicated for the Services segment’s client relationships and technology, related to certain product lines that were affected by the factors above. There was no impairment indicated for the remaining intangible assets, as the remaining carrying amounts were estimated to be recoverable despite the decline in projected earnings. Client relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. For the three months ended June 30, 2017, we recorded an impairment charge of $14.9 million related to the segment’s client relationships, primarily due to the changes in estimated client revenues based on the factors discussed above. The remaining carrying value of client relationships is supported by projected earnings. For the three months ended June 30, 2017, we also recorded an impairment charge of $0.9 million |
Note 8 - Reinsurance
Note 8 - Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance In our mortgage insurance business, we use reinsurance as part of our risk distribution strategy, including to manage our capital position and risk profile. Premiums are ceded under the Single Premium QSR Program, the QSR Program and the Excess-of-Loss Program. The effect of reinsurance on our mortgage insurance net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Net premiums written—insurance: Direct $ 1,082,285 $ 1,032,735 $ 1,000,111 Assumed 6,901 (1) 25 29 Ceded (2) (98,165 ) (214,343 ) (266,306 ) Net premiums written—insurance $ 991,021 $ 818,417 $ 733,834 Net premiums earned—insurance: Direct $ 1,066,864 $ 990,016 $ 999,093 Assumed 6,904 (1) 28 35 Ceded (2) (67,047 ) (57,271 ) (77,359 ) Net premiums earned—insurance $ 1,006,721 $ 932,773 $ 921,769 ______________________ (1) Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. (2) Net of profit commission. Single Premium QSR Program 2016 Single Premium QSR Agreement. In the first quarter of 2016, in order to proactively manage the risk and return profile of Radian Guaranty’s insured portfolio and continue managing its capital position under the PMIERs financial requirements in a cost-effective manner, Radian Guaranty entered into the 2016 Single Premium QSR Agreement with a panel of third-party reinsurers. Under the 2016 Single Premium QSR Agreement, effective January 1, 2016, Radian Guaranty began ceding the following Single Premium IIF and NIW, subject to certain conditions: • 20% of its existing performing Single Premium Policies written between January 1, 2012 and March 31, 2013; • 35% of its existing performing Single Premium Policies written between April 1, 2013 and December 31, 2015; and • 35% of its Single Premium NIW from January 1, 2016 to December 31, 2017, subject to a limitation on ceded premiums written equal to $195 million for policies issued between January 1, 2016 and December 31, 2017. Radian Guaranty receives a 25% ceding commission for premiums ceded pursuant to this transaction. Radian Guaranty also receives a profit commission, provided that the loss ratio on the loans covered under the agreement generally remains below 55% . Losses on the ceded risk above this level reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis. The agreement is scheduled to terminate on December 31, 2027; however, Radian Guaranty has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of January 1, 2020, or at the end of any calendar quarter thereafter, which would result in Radian Guaranty reassuming the related RIF in exchange for a net payment from the reinsurer calculated in accordance with the terms of the agreement. Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. As of the effective date, the result of this amendment increased the amount of risk ceded on Single Premium Policies, including for the purposes of calculating any future ceding commissions and profit commissions that Radian Guaranty will earn. It also increased the future amounts of our ceded premiums and ceded losses. RIF ceded under the 2016 Single Premium QSR Agreement was $6.3 billion as of December 31, 2018 , compared to $6.9 billion and $3.8 billion as of December 31, 2017 and 2016 , respectively. 2018 Single Premium QSR Agreement. In October 2017, we entered into the 2018 Single Premium QSR Agreement with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Agreement, we expect to cede 65% of our Single Premium NIW beginning with the business written in January 2018, subject to certain conditions that may affect the amount ceded, including a limitation on ceded premiums written equal to $335 million for policies issued between January 1, 2018 and December 31, 2019. Notwithstanding this limitation, the parties may mutually agree to amend the agreement, including with respect to any limitations on the amounts of insurance that may be ceded. Radian Guaranty receives a 25% ceding commission for premiums ceded pursuant to this transaction. Radian Guaranty also receives an annual profit commission based on the performance of the loans subject to the agreement, provided that the loss ratio on the subject loans is below 56% for that calendar year. Radian Guaranty may discontinue ceding new policies under the agreement at the end of any calendar quarter. The agreement is scheduled to terminate on December 31, 2029. However, Radian Guaranty may terminate this agreement prior to the scheduled date if one or both of the GSEs no longer grant full credit for the reinsurance. Radian Guaranty also has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of January 1, 2022, or at the end of any calendar quarter thereafter. Termination of the agreement would result in Radian Guaranty reassuming the related RIF in exchange for a net payment from the reinsurer calculated in accordance with the terms of the agreement. RIF ceded under the 2018 Single Premium QSR Agreement was $1.9 billion as of December 31, 2018 . QSR Program In 2012, Radian Guaranty entered into the QSR Program with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Program and is no longer ceding NIW under this program. RIF ceded under the QSR Program was $0.9 billion , $1.2 billion and $1.6 billion as of December 31, 2018 , 2017 and 2016 , respectively. Ceded Premiums, Commissions and Losses The following tables show the amounts related to the Single Premium QSR Program and the QSR Program for the periods indicated: Single Premium QSR Program QSR Program Year Ended December 31, Year Ended December 31, (In thousands) 2018 2017 2016 2018 2017 2016 Ceded premiums written (1) $ 74,876 $ 193,517 $ 233,206 $ 13,486 $ 19,356 $ 28,097 Ceded premiums earned (1) 44,286 27,284 29,808 19,660 28,503 42,515 Ceding commissions written 29,745 55,333 66,153 3,890 5,536 8,019 Ceding commissions earned (2) 22,097 13,774 15,303 11,349 13,122 16,573 Ceded losses 4,574 2,490 2,262 512 771 1,858 ______________________ (1) Net of profit commission. (2) Includes amounts reported in policy acquisition costs and other operating expenses. Excess-of-Loss Program In November 2018, Radian Guaranty entered into a fully collateralized reinsurance agreement with Eagle Re, an unaffiliated special purpose reinsurer domiciled in Bermuda. This reinsurance agreement provides for up to $434.0 million of aggregate excess-of-loss reinsurance coverage for the applicable percentage of mortgage insurance losses on new defaults on an existing portfolio of eligible Monthly Premium Policies issued between January 1, 2017 and January 1, 2018, with an initial RIF of $9.1 billion . In addition, Radian Guaranty entered into a separate excess-of-loss reinsurance agreement for up to $21.4 million of coverage, representing a pro rata share of the credit risk alongside the risk assumed by Eagle Re on those Monthly Premium Policies. Radian Guaranty and its affiliates have retained the first-loss layer of $204.9 million of aggregate losses. Eagle Re and a separate third-party reinsurer provide 90% and 10% coverage, respectively, on the mezzanine layer of up to $214.1 million of losses (in excess of the retained losses of $204.9 million ). Eagle Re also provides 100% coverage on the next layer of $241.4 million of aggregate losses. Radian Guaranty and its affiliates will then retain losses in excess of the outstanding reinsurance coverage amount. The aggregate excess of loss reinsurance coverage decreases over a ten -year period as the principal balances of the underlying covered mortgages decrease and as claims are paid by Eagle Re. The outstanding reinsurance coverage amount will stop amortizing if certain thresholds are reached, such as if the reinsured mortgages were to experience an elevated level of delinquencies or certain credit enhancement tests were not maintained. Radian Guaranty has rights to terminate the reinsurance agreement upon the occurrence of certain events, including an option to terminate on or after November 25, 2023. Eagle Re financed its coverage by issuing mortgage insurance-linked notes in an aggregate amount of $434.0 million to unaffiliated investors. The notes mature on November 25, 2028, but are subject to earlier termination by Eagle Re, upon Radian Guaranty’s exercise of its rights to terminate the reinsurance agreement. The notes are non-recourse to any assets of Radian Guaranty or its affiliates. The proceeds of the notes have been deposited into a reinsurance trust account for the benefit of Radian Guaranty, and are required to be the source of reinsurance claim payments to Radian Guaranty and principal repayments on the mortgage insurance-linked notes. Funds in the reinsurance trust account are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities at all times. The reinsurance premium due to Eagle Re is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of a period by a coupon rate, which is the sum of one-month LIBOR plus a contractual risk margin, and then subtracting actual investment income collected on the assets in the reinsurance trust during the preceding month. As a result, the premiums we pay will vary based on (i) the spread between LIBOR and the rates on the investments held by the reinsurance trust and (ii) the outstanding amount of reinsurance coverage. Radian Guaranty will also pay an additional annual premium to reimburse Eagle Re for expenses in connection with the issuance of the Notes and Eagle Re’s annual anticipated operating expenses, which are not expected to be material. If the reinsurance agreement is not terminated after five years from issuance, the reinsurance premium’s risk margin payable to Eagle Re increases by 50% . In connection with our excess of loss reinsurance agreement with Eagle Re, we concluded that (i) the risk transfer requirements for reinsurance accounting were met as Eagle Re is assuming significant insurance risk and has a reasonable possibility of a significant loss; and (ii) Eagle Re is a variable interest entity (“VIE”). Based on the accounting guidance that addresses VIEs, because Radian does not have: (i) the power to direct the activities of Eagle Re that most significantly affect its economic performance or (ii) the obligation to absorb losses or the right to receive benefits from Eagle Re that potentially could be significant to Eagle Re, we have not consolidated Eagle Re in our consolidated financial statements. We have also concluded that the reinsurance agreement contains an embedded derivative, which we have accounted for separately as a freestanding derivative. See Note 2 for additional accounting policy information. Although the risk transfer requirements for reinsurance accounting have been met and there is also no recourse to Radian Guaranty by the holders of the mortgage insurance-linked notes, reinsurance does not relieve us of our obligations to our policyholders. In the event the VIE is unable to meet its obligations to us, our insurance subsidiaries would be liable to make claims payments to our policyholders. In the event that all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and the VIE is unable to make its payments to us, our maximum potential loss would be the amount of mortgage insurance claim payments for losses on the insured policies, net of the aggregate reinsurance payments already received, up to the full $434.0 million aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative of $1.1 million , currently recorded in other assets, would no longer have value. Eagle Re represents our only variable interest entity as of December 31, 2018 . The following table presents Eagle Re’s total assets as well as Radian Guaranty’s maximum exposure to loss associated with Eagle Re, each as of December 31, 2018 . Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (3) Total Eagle Re $ 434,034 $ 1,114 (2) $ 434,034 435,148 Total $ 434,034 $ 1,114 $ 434,034 435,148 ______________________ (1) Eagle Re’s assets are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Eagle Re’s liabilities consist of its mortgage insurance-linked notes of $434.0 million , as described above. (2) Represents the fair value of the related embedded derivative, included in other assets in our consolidated balance sheets. (3) Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million of claims have been paid on the reinsured RIF. Collateral Although we use reinsurance as one of our risk management tools, reinsurance does not relieve us of our obligations to our policyholders. In the event the reinsurers are unable to meet their obligations to us, our insurance subsidiaries would be liable for any defaulted amounts. However, in all of our reinsurance transactions, the reinsurers have established a trust to help secure our potential cash recoveries. In addition, for the Single Premium QSR Program, Radian Guaranty holds amounts received from ceded premiums written to collateralize the reinsurers’ obligations, which is reported in reinsurance funds withheld on our consolidated balance sheets. Any loss recoveries and profit commissions to Radian Guaranty related to the Single Premium QSR Program are expected to be realized from this account. Other In our title insurance business, we also use reinsurance as part of our risk distribution strategy. EnTitle Insurance’s reinsurance agreement with a third-party reinsurer provides for coverage of 100% of losses in excess of $1.0 million ultimate net loss on a per claim basis, subject to certain aggregate limits. For the year ended December 31, 2018 |
Note 9 - Other Assets (Notes)
Note 9 - Other Assets (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The following table shows the components of other assets for the periods indicated: December 31, (In thousands) 2018 2017 Deposit with the IRS (1) $ — $ 88,557 Company-owned life insurance 83,377 85,862 Internal-use software (2) 51,367 48,751 Current federal income tax receivable (1) 44,506 — Property and equipment (3) 37,090 38,291 Accrued investment income 34,878 31,389 Loaned securities (Note 6) 27,860 27,964 Unbilled receivables 19,917 22,257 Deferred policy acquisition costs 17,311 16,987 Reinsurance recoverables 14,402 8,492 Other 36,992 39,299 Total other assets $ 367,700 $ 407,849 ______________________ (1) In 2018, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. As such, the remaining balances of the deposits with the IRS as of December 31, 2018 are included in current federal income tax receivable. In January 2019, we received $33 million of the $58 million refund from the IRS and expect to receive the remaining $25 million in the coming months. See Note 10 for additional information regarding the IRS Matter. (2) Internal-use software, at cost, has been reduced by accumulated amortization of $60.3 million and $48.4 million at December 31, 2018 and 2017 , respectively, as well as $5.1 million of impairment charges in 2018. Amortization expense was $11.4 million , $10.7 million and $6.0 million for the years ended December 31, 2018 , 2017 and 2016 respectively. (3) Property and equipment at cost, less accumulated depreciation of $62.9 million and $57.6 million at December 31, 2018 and 2017 , respectively. Depreciation expense was $8.0 million , $6.9 million and $5.6 million for the years ended December 31, 2018 , 2017 and 2016 |
Note 10 - Income Taxes Level 1
Note 10 - Income Taxes Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income Tax Provision The components of our consolidated income tax provision from continuing operations are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current provision (benefit) $ (42,398 ) $ 59,122 $ 4,546 Deferred provision 120,573 166,527 170,887 Total income tax provision $ 78,175 $ 225,649 $ 175,433 The reconciliation of taxes computed at the statutory tax rate of 21% in 2018 and 35% in 2017 and 2016 to the provision for income taxes is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Provision for income taxes computed at the statutory tax rate $ 143,679 $ 121,358 $ 169,290 Change in tax resulting from: Repurchase premium on convertible notes — (96 ) 9,988 State tax provision (benefit), net of federal impact 5,570 (15,641 ) (8,974 ) Valuation allowance (1,856 ) 18,197 10,663 Remeasurement of net deferred tax assets due to the TCJA — 102,617 — Impact related to settlement of IRS Matter (73,585 ) — — Other, net 4,367 (786 ) (5,534 ) Provision for income taxes $ 78,175 $ 225,649 $ 175,433 Deferred Tax Assets and Liabilities The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: December 31, (In thousands) 2018 2017 Deferred tax assets: Accrued expenses $ 17,487 $ 30,267 Unearned premiums 34,686 35,035 Differences in fair value of financial instruments 1,115 — Net unrealized loss on investments 16,297 — State income taxes 67,069 68,577 Partnership investments — 47,991 Loss reserves 1,044 1,397 Alternative minimum tax credit carryforward — 57,086 Goodwill and intangibles 35,068 36,947 Deferred policy acquisition and ceding commission costs 15,288 14,888 Share-based compensation 10,776 10,190 Other 13,091 16,421 Total deferred tax assets 211,921 318,799 Deferred tax liabilities: Partnership investments 639 — Differences in fair value of financial instruments — 3,833 Net unrealized gain on investments — 6,792 Depreciation 12,201 11,138 Other 2,942 2,446 Total deferred tax liabilities 15,782 24,209 Less: Valuation allowance 64,496 65,023 Net deferred tax asset $ 131,643 $ 229,567 Tax Reform On December 22, 2017, H.R.1, the TCJA, was signed into law. In accordance with the provisions of the accounting standard regarding accounting for income taxes, changes in tax rates and tax law are accounted for in the period of enactment, which, for federal legislation, is the date the President signed the bill into law. Effective January 1, 2018, the TCJA, among other things, reduced the federal corporate income tax rate from 35% to 21% , repealed the corporate alternative minimum tax and modified certain limitations on executive compensation. Under GAAP, the effect of tax rate changes on deferred tax balances is recorded as a component of the income tax provision related to continuing operations for the period in which the new tax law is enacted. Accordingly, in 2017, we recognized a non-cash income tax expense of $102.6 million related to the remeasurement of our net deferred tax assets, which was included as a component of the income tax provision for the year ended December 31, 2017. Additionally, as a result of finalizing our interpretation of related guidance, we completed our accounting in the fourth quarter of 2018 during the one-year measurement period from the enactment date, as provided under Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” issued by the SEC staff in December 2017. No material adjustments to our provisional amounts were required. For periods beginning after December 31, 2017, we began realizing a significant reduction in our annualized effective tax rate, before considering Discrete Items, primarily due to the reduction in the federal corporate tax rate from 35% to 21% . Current and Deferred Taxes As of December 31, 2018 , we recorded a net current income tax receivable of $43.8 million , which primarily relates to the unused portion of our qualified deposits relating to our IRS settlement, partially offset by liabilities of $33.6 million related to applying the standards of accounting for uncertainty in income taxes. We have $2.2 million of U.S. NOL carryforwards, related to our March 2018 acquisition of EnTitle, which is subject to limitation under IRC Section 382. To the extent not utilized, the U.S. NOL carryforwards will expire by tax year 2038. Certain entities within our consolidated group have also generated deferred tax assets of approximately $67.7 million , relating primarily to state and local NOL carryforwards which, if unutilized, will expire during various future tax periods. Valuation Allowances We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. We have determined that certain non-insurance entities within Radian may continue to generate taxable losses on a separate company basis in the near term and may not be able to fully utilize certain state and local NOLs on their state and local tax returns. Therefore, with respect to deferred tax assets relating to these state and local NOLs and other state timing adjustments, we retained a valuation allowance of $64.5 million at December 31, 2018 and $65.0 million at December 31, 2017 . Tax Benefit Preservation Measures We currently have a tax benefit preservation plan, together with certain amendments to our amended and restated bylaws and our amended and restated certificate of incorporation (collectively, our “Tax Benefit Preservation Measures”), that was established to protect our ability to utilize our NOLs and other tax attributes by attempting to prevent an “ownership change” under U.S. federal income tax rules. Our Tax Benefit Preservation Measures expire in 2019. IRS Matter In July 2018, we finalized a settlement with the IRS related to adjustments we had been contesting that resulted from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposed the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed denying the associated tax benefits of these items. This settlement with the IRS resolved the issues and concluded all disputes related to the IRS Matter. In the three-month period ended June 30, 2018, we recorded tax benefits of $73.6 million , which includes both the impact of the settlement with the IRS as well as the reversal of certain previously accrued state and local tax liabilities. In 2018, under the terms of the settlement, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. See Note 9 for additional information about these qualified deposits. Unrecognized Tax Benefits As of December 31, 2018 , we have $16.6 million of unrecognized tax benefits that would affect the effective tax rate, if recognized. We have no interest or penalty accrued as of December 31, 2018 . Our policy for the recognition of interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision, of which $2.2 million and $1.8 million were recorded for the years ended December 31, 2017 and 2016 , respectively. In 2018, we recorded an income tax benefit of $61.6 million for interest and penalties primarily related to our IRS settlement. A reconciliation of the beginning and ending unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2018 2017 Balance at beginning of period $ 123,951 $ 123,028 Tax positions related to the current year: Increases 5,058 2,343 Tax positions related to prior years: Increases 26,465 24,122 Decreases (43,146 ) (1,437 ) Settlements with taxing authorities (52,353 ) — Lapses of applicable statute of limitation (26,423 ) (24,105 ) Balance at end of period $ 33,552 $ 123,951 Our total net unrecognized tax benefits decreased by $90.4 million from December 31, 2017 to December 31, 2018, primarily due to a $43.1 million decrease in prior year tax positions and a $52.4 million decrease due to settlements with taxing authorities. The settlement of the IRS Matter was the primary contributor to both of these decreases. These decreases were partially offset by an increase of $26.5 million in our net unrecognized tax benefits related to prior years. This net increase primarily reflects the impact of unrecognized tax benefits associated with our recognition of certain premium income. Although unrecognized tax benefits for this item decreased due to the expiration of the applicable statute of limitations for the taxable period ended December 31, 2014, the related amounts continued to impact subsequent years and resulted in a corresponding increase to the unrecognized tax benefits. Over the next twelve months, our unrecognized tax benefits may decrease by approximately $6.5 million |
Note 11 - Losses and LAE Level
Note 11 - Losses and LAE Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Losses and Loss Adjustment Expenses Our reserve for losses and LAE, at the end of each period indicated, consisted of: Year Ended December 31, (In thousands) 2018 2017 Mortgage Insurance loss reserves $ 397,891 $ 507,588 Services loss reserves (1) 3,470 — Total reserve for losses and LAE $ 401,361 $ 507,588 ______________________ (1) A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018. See Note 8 for information about our use of reinsurance in our title insurance business. The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: Year Ended December 31, (In thousands) 2018 2017 Reserves for losses by category: Prime $ 231,169 $ 285,022 Alt-A and A minus and below 119,527 170,873 IBNR and other 13,864 16,021 LAE 10,271 13,349 Reinsurance recoverable (1) 10,992 8,315 Total primary reserves 385,823 493,580 Total pool reserves (2) 11,640 13,463 Total First-lien reserves 397,463 507,043 Other (3) 428 545 Total reserve for losses $ 397,891 $ 507,588 ______________________ (1) Represents ceded losses on reinsurance transactions, including the QSR Program and the Single Premium QSR Program. These amounts are included in the reinsurance recoverables reported in other assets in our consolidated balance sheets. (2) Includes reinsurance recoverable of $17 thousand and $35 thousand as of December 31, 2018 and December 31, 2017 , respectively. (3) Does not include our second-lien PDR that is included in other liabilities. For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan PDR: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at January 1, $ 507,588 $ 760,269 $ 976,399 Less: Reinsurance recoverables (1) 8,350 6,851 8,286 Balance at January 1, net of reinsurance recoverables 499,238 753,418 968,113 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 135,291 185,486 206,383 Prior years (31,699 ) (49,286 ) (3,516 ) Total incurred 103,592 136,200 202,867 Deduct: Paid claims and LAE related to: Current year (2) 5,856 25,011 11,410 Prior years 210,092 365,369 406,152 Total paid 215,948 390,380 (3) 417,562 Balance at end of period, net of reinsurance recoverables 386,882 499,238 753,418 Add: reinsurance recoverables (1) 11,009 8,350 6,851 Balance at December 31, $ 397,891 $ 507,588 $ 760,269 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions, the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. (3) Includes the payment of $54.8 million made in connection with the scheduled final settlement of the Freddie Mac Agreement in the third quarter of 2017. Reserve Activity 2018 Activity Loss Reserves. Our mortgage insurance loss reserves at December 31, 2018 declined as compared to December 31, 2017 , primarily as a result of the amount of paid claims continuing to outpace losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our incurred losses for 2018, and they were primarily impacted by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults, which declined from 10% at December 31, 2017 to 8% at December 31, 2018. The provision for losses during 2018 was positively impacted by favorable reserve development on prior year defaults, which was primarily driven by a reduction during the period in certain Default to Claim Rate assumptions for these prior year defaults compared to the assumptions used at December 31, 2017 . The reductions in Default to Claim Rate assumptions resulted from observed trends, primarily higher Cures than were previously estimated. Hurricane Impact 2018/2017 . During the third quarter of 2017, Hurricanes Harvey and Irma caused extensive property damage to areas of Texas, Florida and Georgia, as well as other general disruptions including power outages and flooding. Although the mortgage insurance we write protects the lenders from a portion of losses resulting from loan defaults, it does not provide protection against property loss or physical damage. Our Master Policies contain an exclusion against physical damage, including damage caused by floods or other natural disasters. Depending on the policy form and circumstances, we may, among other things, deduct the cost to repair or remedy physical damage above a de minimis amount from a claim payment and/or, under certain circumstances, deny a claim where (i) the property underlying a mortgage in default is subject to unrestored physical damage or (ii) the physical damage is deemed to be the principal cause of default. Following Hurricanes Harvey and Irma, we observed an increase in new primary defaults from FEMA Designated Areas associated with these hurricanes. As expected most of these hurricane-related defaults cured by the end of 2018, and at higher cure rates than the rates for our general population of defaults. We assigned a 3% Default to Claim Rate assumption to the new primary defaults from FEMA Designated Areas associated with Hurricanes Harvey and Irma that were reported subsequent to those two natural disasters and through February 2018. These incremental defaults did not have a material impact on our provision for losses in 2017 or 2018. Claims Paid . Total claims paid decreased for 2018, compared to 2017. The decrease in claims paid is consistent with the ongoing decline in the outstanding default inventory. In addition, claims paid for 2017 were higher because they included payments that were made in connection with the scheduled final settlement of the Freddie Mac Agreement in the third quarter of 2017. 2017 Activity Our loss reserves at December 31, 2017 declined as compared to December 31, 2016, primarily as a result of the amount of paid claims and Cures continuing to outpace losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our total incurred loss for 2017, and they were primarily impacted by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults, which, except as discussed above for FEMA Designated Areas associated with Hurricanes Harvey and Irma, declined from 12% at December 31, 2016 to 10% at December 31, 2017. The provision for losses during 2017 was positively impacted by favorable reserve development on prior year defaults, which was primarily driven by a reduction during the period in certain Default to Claim Rate assumptions for these prior year defaults compared to the assumptions used at December 31, 2016. The reductions in Default to Claim Rate assumptions resulted from observed trends, primarily higher Cures than were previously estimated. 2016 Activity Our loss reserves at December 31, 2016 declined as compared to December 31, 2015, primarily as a result of the amount of paid claims continuing to exceed losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our total incurred loss for 2016, and they were impacted primarily by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults, which was 12% as of December 31, 2016. The impact to incurred losses from reserve development on default notices reported in prior years was not significant during 2016. Reserve Assumptions Default to Claim Rate Our aggregate weighted-average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses was 33% ( 31% excluding pending claims) at December 31, 2018 compared to 31% ( 29% excluding pending claims) at December 31, 2017 . The increase in our Default to Claim Rate in 2018 was primarily driven by a reduction in the number of defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma (which had a lower Default to Claim Rate of 3% ). Excluding the impact of defaults associated with these FEMA Designated Areas, our aggregate weighted-average net Default to Claim Rate (net of Claims Denials and Rescissions) was 33% at December 31, 2018, as compared to 38% at December 31, 2017. As of December 31, 2018 , our gross Default to Claim Rates on our primary portfolio ranged from 8% for new defaults, to 68% for other defaults not in Foreclosure Stage, and 75% for Foreclosure Stage Defaults. As of December 31, 2017, these gross Default to Claim Rates ranged from 10% for new defaults, to 62% for other defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans grouped according to the period in which the default occurred, as measured by the progress toward foreclosure sale and the number of months in default. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our estimated Default to Claim Rate is generally based on our recent experience. Consideration is also given to differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory. Loss Mitigation As our insurance written in years prior to and including 2008 has become a smaller percentage of our overall insured portfolio, a reduced amount of Loss Mitigation Activity has occurred with respect to the claims we receive, and we expect this general trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses significantly. Our estimate of such net future Loss Mitigation Activities, inclusive of claim withdrawals, reduced our loss reserve as of December 31, 2018 and 2017 by $32 million and $31 million , respectively. The amount of estimated Loss Mitigation Activities incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of Rescissions, Claim Denials and Claim Curtailments on future claims, but also the volume and attributes of our defaulted insured loans, our estimated Default to Claim Rate and our estimated Claim Severity, among other assumptions. Our reported Rescission, Claim Denial and Claim Curtailment activity in any given period is subject to challenge by our lender and servicer customers. We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate of $11.3 million and $10.4 million at December 31, 2018 and 2017 , respectively, includes reserves for this activity. We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated Rescissions. Sensitivity Analysis We considered the sensitivity of first-lien loss reserve estimates at December 31, 2018 by assessing the potential changes resulting from a parallel shift in Claim Severity and Default to Claim Rate estimates for primary loans. For example, assuming all other factors remain constant, for every one percentage point change in primary Claim Severity (which we estimate to be 96.0% of risk exposure at December 31, 2018 ), we estimated that our loss reserves would change by approximately $3.8 million at December 31, 2018 . Assuming all other factors remain constant, for every one percentage point change in our overall primary net Default to Claim Rate (which we estimate to be 33% at December 31, 2018 , including our assumptions related to Rescissions and Claim Denials), we estimated a $10.4 million change in our loss reserves at December 31, 2018 . Additional Disclosures The following tables provide information as of and for the periods indicated about: (i) incurred losses, net of reinsurance; (ii) the total of IBNR liabilities plus expected development on reported claims, included within the net incurred loss amounts; (iii) the cumulative number of reported defaults; and (iv) cumulative paid claims, net of reinsurance. The default year represents the period that a new default notice is first reported to us by loan servicers, related to borrowers that missed two monthly payments. The information about net incurred losses and paid claims development for the years ended prior to 2018 is presented as supplementary information. Incurred Losses, Net of Reinsurance Year Ended December 31, As of December 31, 2018 ($ in thousands) Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) Unaudited Default Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 1,671,239 $ 1,894,783 $ 1,930,263 $ 1,939,479 $ 1,974,568 $ 1,991,796 $ 2,016,412 $ 2,018,907 $ 2,022,629 $ 2,025,828 $ 1,572 213.836 2010 1,102,856 1,215,136 1,192,482 1,195,056 1,207,774 1,220,289 1,218,264 1,219,469 1,221,938 1,019 146.324 2011 1,058,625 1,152,016 1,052,277 1,050,555 1,062,579 1,061,161 1,059,116 1,060,376 970 118.972 2012 803,831 763,969 711,213 720,502 715,646 714,783 713,750 586 89.845 2013 505,732 405,334 401,444 404,333 402,259 400,243 344 71.749 2014 337,784 247,074 265,891 264,620 260,098 241 58.215 2015 222,555 198,186 178,042 183,952 292 49.825 2016 201,016 165,440 149,753 428 46.264 2017 180,851 151,802 1,212 47.283 2018 131,513 1,876 39.598 Total $ 6,299,253 ______________________ (1) Represents reserves as of December 31, 2018 related to IBNR liabilities. (2) Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2018 and December 31, 2017 are 3,776 and 8,862 notices, respectively, of new primary defaults related to the FEMA Designated Areas associated with Hurricanes Harvey and Irma. Cumulative Paid Claims, Net of Reinsurance Year Ended December 31, (In thousands) Unaudited Default Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 136,413 $ 619,496 $ 1,236,210 $ 1,471,264 $ 1,711,019 $ 1,807,031 $ 1,921,134 $ 1,958,660 $ 1,986,076 $ 2,004,219 2010 11,810 394,278 700,316 956,598 1,055,935 1,145,497 1,178,546 1,198,031 1,210,281 2011 40,392 323,216 756,820 892,959 982,830 1,016,855 1,038,582 1,048,966 2012 19,200 295,332 528,744 631,982 672,271 692,291 702,136 2013 34,504 191,040 307,361 357,087 379,036 388,688 2014 13,108 115,852 200,422 233,607 246,611 2015 10,479 84,271 142,421 163,916 2016 11,061 76,616 119,357 2017 24,653 66,585 2018 5,584 Total $ 5,956,343 All outstanding liabilities before 2009, net of reinsurance 33,479 Liabilities for claims, net of reinsurance (1) $ 376,389 ______________________ (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 6,299,253 Add: All outstanding liabilities before 2009, net of reinsurance 33,479 Less: Cumulative paid claims, net of reinsurance 5,956,343 Liabilities for claims, net of reinsurance $ 376,389 The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the Mortgage Insurance reserve for losses and LAE at December 31, 2018 : (In thousands) December 31, 2018 Net outstanding liabilities - Mortgage Insurance: Reserve for losses and LAE, net of reinsurance $ 376,389 Reinsurance recoverables on unpaid claims 11,009 Unallocated LAE 10,493 Total gross reserve for losses and LAE (1) $ 397,891 ______________________ (1) Excludes Services reserve for losses and LAE of $3.5 million . The following is supplementary information about average historical claims duration as of December 31, 2018 , representing the average distribution of when claims are paid relative to the year of default: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage Insurance 6.1% 34.5% 31.4% 13.8% 7.4% 4.1% 2.9% 1.5% 1.2% 0.9% |
Note 12 - Senior Notes Level 1
Note 12 - Senior Notes Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Senior Notes [Text Block] | The carrying value of our senior notes at December 31, 2018 and 2017 was as follows: December 31, ($ in thousands) 2018 2017 5.500% Senior Notes due 2019 $ 158,324 $ 157,636 5.250% Senior Notes due 2020 232,729 231,834 7.000% Senior Notes due 2021 195,867 195,146 4.500% Senior Notes due 2024 443,428 442,458 Total Senior Notes $ 1,030,348 $ 1,027,074 Extinguishment of Debt 2017 Activity Repurchases of Senior Notes due 2019, 2020 and 2021. During the third quarter of 2017, pursuant to cash tender offers, we purchased aggregate principal amounts of $141.4 million , $115.9 million and $152.3 million of our Senior Notes due 2019, 2020 and 2021, respectively. We funded the purchases with $450.8 million in cash (plus accrued and unpaid interest due on the purchased notes). These purchases resulted in a loss on induced conversion and debt extinguishment of $45.8 million . At December 31, 2017, the remaining principal amounts of our outstanding Senior Notes due 2019, 2020 and 2021 were $158.6 million , $234.1 million and $197.7 million , respectively. Repurchases of Convertible Senior Notes due 2017 and 2019. During the second quarter of 2017, we purchased an aggregate principal amount of $21.6 million of our outstanding Convertible Senior Notes due 2017. We funded the purchases with $31.6 million in cash (plus accrued and unpaid interest due on the purchased notes). These purchases of Convertible Senior Notes due 2017 resulted in a loss on induced conversion and debt extinguishment of $1.2 million . In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. We received proceeds of $4.1 million for this termination. In November 2016, we announced our intent to exercise our redemption option for the remaining $68.0 million aggregate principal amount of our Convertible Senior Notes due 2019. As a result of the average closing price of our common stock exceeding the conversion price of $10.60 prior to the redemption date, all of the holders of these notes elected to exercise their conversion rights. Radian elected to settle all of the notes surrendered for conversion with cash. We settled our obligations with respect to these conversions on January 27, 2017, with a cash payment of $110.1 million . At the time of settlement, this transaction resulted in a pretax charge of $4.5 million , representing the difference between the fair value and the carrying value, net of unamortized issuance costs, of the liability component of the Convertible Senior Notes due 2019. This transaction also resulted in an aggregate decrease as of the settlement date of 6.4 million diluted shares for the purposes of determining diluted net income per share. As of December 31, 2017, there were no Convertible Senior Notes due 2017 or Convertible Senior Notes due 2019 outstanding. 2016 Activity Repurchases of Convertible Senior Notes due 2017 and 2019. During 2016, we entered into privately negotiated agreements to purchase, for cash or a combination of cash and shares of Radian Group common stock, aggregate principal amounts of $30.1 million and $322.0 million , respectively, of our outstanding Convertible Senior Notes due 2017 and 2019. We funded the purchases with $235.0 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to certain of the sellers 17.0 million shares of Radian Group common stock. These purchases of Convertible Senior Notes due 2017 and 2019 resulted in a pretax charge of $60.1 million . This loss represents: • the $41.8 million market premium representing the excess of the fair value of the total consideration delivered to the sellers of the Convertible Senior Notes due 2017 and 2019 over the fair value of the common stock issuable pursuant to the original conversion terms of the purchased notes; • the $17.2 million difference between the fair value and the carrying value, net of unamortized issuance costs, of the liability component of the purchased notes; and • the $1.1 million impact of related transaction costs. In connection with our privately negotiated purchases of Convertible Senior Notes due 2017 in March 2016, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received consideration of 0.2 million shares of Radian Group common stock, which was valued at $2.6 million based on a stock price on the closing date of $11.86 . In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. Redemption of Senior Notes due 2017. On August 12, 2016, we redeemed the remaining $195.5 million aggregate principal amount of our Senior Notes due 2017 for the price established in accordance with the indenture governing the notes. We paid $211.3 million in cash (including accrued interest through the redemption date) to holders of the notes at redemption and recorded a loss on debt extinguishment of $15.0 million . Senior Notes Senior Notes due 2019. In May 2014, in anticipation of the Clayton acquisition, we issued $300 million principal amount of Senior Notes due 2019 and received net proceeds of $293.8 million . These notes mature on June 1, 2019 and bear interest at a rate of 5.500% per annum, payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2014. Senior Notes due 2020. In June 2015, we issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of $343.3 million . These notes mature on June 15, 2020 and bear interest at a rate of 5.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. Senior Notes due 2021. In March 2016, we issued $350 million aggregate principal amount of Senior Notes due 2021 and received net proceeds of $343.4 million . These notes mature on March 15, 2021 and bear interest at a rate of 7.000% per annum, payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2016. Senior Notes due 2024. In September 2017, we issued $450 million aggregate principal amount of Senior Notes due 2024 and received net proceeds of $442.2 million . These notes mature on October 1, 2024 and bear interest at a rate of 4.500% per annum, payable semi-annually on April 1 and October 1 of each year, with interest payments commencing on April 1, 2018. Redemption Terms in Senior Notes. We have the option to redeem the Senior Notes due 2019, 2020, 2021 and 2024 in whole or in part, at any time or from time to time prior to maturity, at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) a “make-whole amount,” which is the sum of the present values of the remaining scheduled payments of principal and interest (excluding any portion of interest accrued to the redemption date) in respect of the notes to be redeemed, discounted to the redemption date at the applicable treasury rate plus 50 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the redemption date. Covenants in Senior Notes. The Senior Notes due 2019, 2020, 2021 and 2024 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates and modification of the covenants. Additionally, the applicable indentures include covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the respective indentures for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% |
Note 13 - Other Liabilities (No
Note 13 - Other Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities The following table shows the components of other liabilities as of the dates indicated: Year Ended December 31, (In thousands) 2018 2017 Deferred ceding commission $ 91,400 $ 89,907 FHLB advances 82,532 — Accrued compensation 61,452 67,687 Amount payable on the return of cash collateral under securities lending agreements 11,699 19,357 Current federal income taxes — 96,740 Other 86,576 80,154 Total other liabilities $ 333,659 $ 353,845 FHLB Advances In August 2016, Radian Guaranty and Radian Reinsurance became members of the FHLB. As members, they may borrow from the FHLB, subject to certain conditions, which include the need to post collateral and the requirement to maintain a minimum investment in FHLB stock, in part depending on the level of their outstanding FHLB advances. As of December 31, 2018 , we had $82.5 million of fixed-rate advances outstanding with a weighted average interest rate of 2.73% . Interest on the FHLB advances is payable quarterly, or at maturity if the term of the advance is less than 90 days . As of December 31, 2018 , $60.5 million of the FHLB advances mature in 2019, $3.0 million mature in 2020, $8.0 million mature in 2021, $9.0 million mature in 2023 and $2.0 million mature in 2024. Principal is due at maturity. For obligations with maturities greater than or equal to 90 days , we may prepay the debt at any time, subject to a prepayment fee calculation. The FHLB advances are required to be collateralized by eligible assets with a market value that must be maintained at a minimum of approximately 103% to 105% of the principal balance of the FHLB advances (based on the eligible collateral we have provided at December 31, 2018 , which consisted of an aggregate amount of $88.4 million in U.S. government and agency securities and RMBS from fixed-maturities available for sale within our investment securities portfolio). Amount Payable on the Return of Cash Collateral under Securities Lending Agreements We participate in a securities lending program through which we loan certain securities in our investment portfolio to Borrowers for short periods of time. These securities lending agreements, whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities, are considered collateralized financing arrangements. Amounts payable on the return of cash collateral under securities lending agreements are classified as other liabilities in our consolidated balance sheets. See Note 6 for additional information. Revolving Credit Facility On October 16, 2017, Radian Group entered into a three-year, $225.0 million unsecured revolving credit facility with a syndicate of bank lenders. Terms of the credit facility include an accordion feature that allows Radian Group, at its option, to increase the total borrowing capacity during the term of the agreement, subject to our obtaining the necessary increased commitments from lenders (which may include then existing or other lenders), up to a total of $300 million . Effective October 26, 2018, Radian Group exercised its rights under the accordion feature to add another global bank to the existing syndicate of bank lenders and to increase the amount of total commitments under the credit facility by $42.5 million , bringing the aggregate unsecured revolving credit facility to $267.5 million . Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including capital contributions to Radian Group’s insurance and reinsurance subsidiaries as well as growth initiatives. The credit facility contains customary representations, warranties, covenants, terms and conditions. Our ability to borrow under the credit facility is conditioned on the satisfaction of certain financial and other covenants, including covenants related to minimum net worth and statutory surplus, a maximum debt-to-capitalization level, limits on certain types of indebtedness and liens, minimum liquidity levels and Radian Guaranty’s eligibility as a private mortgage insurer with the GSEs. At December 31, 2018 , Radian Group was in compliance with all the covenants and there were no |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Proceedings We are routinely involved in a number of legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. In the course of our regular review of pending legal and regulatory matters, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued. As described in Note 10 , on September 4, 2014 we received formal Notices of Deficiency from the IRS related to certain losses and deductions resulting from our investment in a portfolio of non-economic REMIC residual interests. As previously disclosed, we contested adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. In July 2018, we finalized a settlement with the IRS related to the adjustments we had been contesting. This settlement with the IRS resolved the issues and concluded all disputes related to the IRS Matter. In 2018, under the terms of the settlement, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. On December 22, 2016, Ocwen Loan Servicing, LLC and Homeward Residential, Inc. (collectively, “Ocwen”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty (the “Complaint”) alleging breach of contract and bad faith claims and seeking monetary damages and declaratory relief. Ocwen has also initiated similar legal proceedings against several other mortgage insurers. On December 17, 2016, Ocwen separately filed a parallel arbitration petition against Radian Guaranty before the American Arbitration Association (“AAA”) asserting substantially the same allegations (the “Arbitration”). Ocwen’s filings together listed 9,420 mortgage insurance certificates issued under multiple insurance policies, including Pool Insurance policies, as subject to the dispute. On June 5, 2017, Ocwen filed an amended complaint and an amended petition (collectively, the “Amended Filings”) with both the court and the AAA, respectively, together listing 8,870 certificates as subject to the dispute. On April 11, 2018, the parties entered into a confidential agreement with respect to all certificates subject to the dispute. The confidential agreement resolved certain categories of claims involved in the dispute and, on April 12, 2018, the parties filed a stipulation of voluntary dismissal of the federal court proceeding and the trial judge issued an Order dismissing all claims and counterclaims subject to the parties’ agreement. Radian Guaranty was not required to make any payment in connection with this confidential agreement. Pursuant to the confidential agreement, the parties: (1) dismissed the federal court proceeding; (2) narrowed the scope of the dispute to Ocwen’s breach of contract claims seeking payment of insurance benefits on approximately 2,500 certificates that Ocwen was previously pursuing through the Amended Filings; and (3) agreed to resolve the remaining dispute through the Arbitration. Radian Guaranty believes that Ocwen’s allegations and claims in the legal proceedings described above are without merit and legally deficient, and plans to defend these claims vigorously. We are not able to estimate a reasonably possible loss, if any, or range of loss in this matter because of the current preliminary stage of the Arbitration. On August 31, 2018, Nationstar Mortgage LLC d/b/a Mr. Cooper (“Nationstar”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty (the “Complaint”) alleging breach of contract, bad faith, and unjust enrichment claims and seeking monetary damages and declaratory relief. The Complaint lists 3,014 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving insurance coverage decisions. The Complaint further lists 2,231 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving premium refund requests. Radian Guaranty believes that Nationstar’s allegations and claims in the legal proceedings described above are without merit and legally deficient, and plans to defend these claims vigorously. We are not able to estimate a reasonably possible loss, if any, or range of loss in this matter because of the preliminary stage of the litigation. We also are periodically subject to reviews and audits, as well as inquiries, information-gathering requests and investigations. In connection with these matters, from time to time we receive requests and subpoenas seeking information and documents related to aspects of our business. Our Master Policies establish the timeline within which any suit or action arising from any right of an insured under the policy generally must be commenced. In general, any suit or action arising from any right of an insured under the policy must be commenced within two years after such right first arose for primary insurance and within three years for certain other policies, including certain Pool Insurance policies. Although we believe that our Loss Mitigation Activities are justified under our policies, we continue to face challenges from certain lender and servicer customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials or Claim Curtailments. We are currently in discussions with these customers regarding Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 11 for further information. Further, there are loans in our total defaulted portfolio (in particular, our older defaulted portfolio) for which actions or proceedings (such as foreclosure that provide the insured with title to the property) may not have been commenced within the outermost deadline in our Prior Master Policy. We are evaluating these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the ultimate resolution of these issues, it is possible that arbitration or legal proceedings could result. Other Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities). To allow our customers to comply with these regulations at that time, we typically were required, depending on the amount of credit enhancement we were providing, to provide: (i) audited financial statements for the insurance subsidiary participating in the transaction or (ii) a full and unconditional holding company-level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving $87.8 million of remaining credit exposure as of December 31, 2018 . We provide contract underwriting as an outsourced service to our customers. Under our current contract underwriting program the remedy we offer is limited indemnification to our contract underwriting customers only with respect to those loans that we simultaneously underwrite for both secondary market compliance and for potential mortgage insurance eligibility. In 2018 , payments for losses related to contract underwriting remedies were de minimis. In 2018 , our provision for contract underwriting expenses was de minimis and our reserve for contract underwriting obligations at December 31, 2018 was $0.2 million . We monitor this risk and negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. We also routinely audit the performance of our contract underwriters. We lease office space for use in our operations. The lease agreements, which expire periodically through August 2032, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $9.7 million in 2018 , $5.7 million in 2017 and $5.0 million in 2016 . The commitment for non-cancelable operating leases in future years is as follows: (In thousands) 2019 $ 11,310 2020 10,847 2021 10,165 2022 10,100 2023 10,251 Thereafter 56,317 Total $ 108,990 At December 31, 2018 , there were no |
Note 15 - Capital Stock (Notes)
Note 15 - Capital Stock (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Stock 2018 Activity On August 16, 2018, Radian Group’s board of directors approved a new share repurchase program that authorizes the Company to repurchase up to $100 million of its common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. As of December 31, 2018, the full purchase authority of up to $100 million remained available under this program, which expires on July 31, 2019. On August 9, 2017, Radian Group’s board of directors authorized a share repurchase program to spend up to $50 million to repurchase Radian Group common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. Radian established a trading plan under Rule 10b5-1 of the Exchange Act to implement the program. The Company completed this program during the first half of 2018 by purchasing 3.0 million shares of Radian Group common stock at an average price of $16.56 per share, including commissions. 2017 Activity On June 29, 2016, Radian Group’s board of directors authorized a share repurchase program to spend up to $125 million to repurchase Radian Group common stock. In order to implement the program, Radian adopted a trading plan under Rule 10b5-1 of the Exchange Act during the third quarter of 2016. During the second quarter of 2017, 380 shares were purchased at an average price of $15.59 per share, which represented the only purchases made under the plan. This share repurchase program expired on June 30, 2017. 2016 Activity In the first quarter of 2016, we announced and completed a share repurchase program. Pursuant to this program, we purchased an aggregate of 9.4 million shares of Radian Group common stock for $100.2 million , at a weighted-average price per share of $10.62 , including commissions. No further purchase authority remains under this share repurchase program. As partial consideration for our March 2016 privately negotiated purchases of a portion of our Convertible Senior Notes due 2017 and 2019, we issued to the sellers 17.0 million shares of Radian Group common stock. In addition, in connection with our termination of the corresponding portion of the related capped call transactions, we received consideration of 0.2 million shares of Radian Group common stock. See Note 12 for additional information regarding these transactions. All shares of Radian Group common stock that we received from the above transactions were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. Other Purchases We may purchase shares on the open market to settle stock options exercised by employees and purchases under our Employee Stock Purchase Plan. Through December 31, 2018 , from time to time we also purchased shares on the open market to fund certain 401(k) matches. In addition, upon the vesting of certain restricted stock awards under our equity compensation plans, we may withhold from such vested awards shares of our common stock to satisfy the tax liability of the award recipients. Dividends Paid In each of the quarters during 2018 , 2017 and 2016 , we declared quarterly cash dividends on our common stock equal to $0.0025 |
Note 16 - Share-Based and Other
Note 16 - Share-Based and Other Compensation Programs | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based and Other Compensation Plans | Share-Based and Other Compensation Programs On May 10, 2017, our stockholders approved the Amended and Restated Equity Compensation Plan, which amended and restated the 2014 Equity Plan. In addition to the Amended and Restated Equity Compensation Plan, we also have awards outstanding under our 2008 Equity Plan and 1995 Equity Plan. The last awards granted pursuant to the 2008 Equity Plan and 1995 Equity Plan were granted in 2014 and 2008, respectively. All awards granted under the Equity Plans have been performance-based or time-vested awards in the form of non-qualified stock options, restricted stock, RSUs, phantom stock, or stock appreciation rights. The maximum contractual term for stock options and similar instruments under the Equity Plans is 10 years , although awards of these instruments may be granted with shorter terms. The Amended and Restated Equity Compensation Plan authorizes the issuance of up to 8,954,109 shares, plus such number of shares of common stock that were subject to awards outstanding under the 2014 Equity Plan and the 2008 Equity Plan prior to the effective date of the Amended and Restated Equity Plan that subsequently terminate, expire or are cancelled and become available for issuance under the Amended and Restated Equity Compensation Plan (“Prior Plan Shares”). There were 7,906,190 shares available for grant under the Amended and Restated Equity Compensation Plan as of December 31, 2018 (the “share reserve”), which includes Prior Plan Shares. Each grant of restricted stock, RSUs, or performance share awards under the Amended and Restated Equity Compensation Plan (other than those settled in cash) reduces the share reserve available for grant under the Amended and Restated Equity Compensation Plan by 1.31 shares for every share subject to such grant. Absent this share reserve adjustment for outstanding restricted stock, RSUs, phantom stock or performance share awards, our shares remaining available for grant under the Amended and Restated Equity Compensation Plan would have been 11,108,244 shares as of December 31, 2018 . Awards under the Amended and Restated Equity Compensation Plan that provide for settlement solely in cash (and not common shares) do not count against the share reserve. Most awards vest at the end of the performance or service period. In the event of a grantee’s death or disability, awards generally vest immediately. Upon retirement, awards generally vest immediately or at the end of the performance period, if any. Awards granted under the Equity Plans to officers and our non-employee directors provide for “double trigger” vesting in the event of a change of control. As a result, awards granted to officers will vest in connection with a change of control only in the event the grantee’s employment is terminated by us without cause or the grantee terminates employment for “good reason,” in each case within 90 days before or one year after the change of control. Awards to our non-employee directors will vest in connection with a change of control only in the event the grantee fails to be appointed to the board of directors of the surviving entity or is not nominated for reelection, or fails to be reelected after nomination, to the board of directors of the Company or the surviving entity, in each case at any time beginning upon the change of control and ending 90 days following the first meeting of the stockholders of the Company or the surviving entity after the change in control. In the event of a hypothetical change of control as of December 31, 2018 , we estimate that the vesting of awards, assuming for purposes of this hypothetical that “double trigger” vesting occurred, would have resulted in a pretax accounting charge to us of approximately $19.7 million , representing the acceleration of compensation expense. We use the Monte Carlo valuation model to determine the fair value of all cash-settled awards where stock price is a factor in determining the vesting, as well as for cash- or equity-settled performance awards where there exists a similar stock price-based market condition. The Monte Carlo valuation model incorporates multiple input variables, including expected life, volatility, risk-free rate of return and dividend yield for each award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte Carlo valuations, we consider historic and observable market data. Depending on certain characteristics of the awards granted under the various Equity Plans noted above, they are accounted for as either liabilities or equity instruments. The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: December 31, ($ in thousands) 2018 2017 2016 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs—Cash-Settled $ — $ — $ — $ 1 $ 18 $ (718 ) Equity: RSUs — Equity Settled 3,763,633 16,591 3,434,976 12,206 3,208,454 13,285 Non-Qualified Stock Options 1,312,791 603 1,692,743 851 2,839,738 3,286 Phantom Stock 234,427 2 234,302 2 234,174 2 Employee Stock Purchase Plan 453 432 449 Equity 17,649 13,491 17,022 Total all share-based plans $ 17,649 $ 13,492 $ 16,304 ______________________ (1) For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. The following table reflects additional information regarding all share-based awards for the years indicated: Year Ended December 31, (In thousands) 2018 2017 2016 Total compensation cost recognized $ 17,649 $ 13,492 $ 16,304 Less: Costs deferred as acquisition costs 324 269 206 Stock-based compensation expense $ 17,325 $ 13,223 $ 16,098 RSUs (Cash-Settled) Time-Vested RSUs — At December 31, 2015, a total of 262,694 time-vested RSUs (to be settled in cash), originally granted to our non-employee directors during 2009 and 2010, remained outstanding. On February 10, 2016, these time-vested RSUs (to be settled in cash) were converted into time-vested RSUs to be settled in common stock. Upon the director’s termination of service with us, the non-employee director generally will be entitled to the equivalent number of shares of common stock. RSUs (Equity Settled) Information with regard to RSUs to be settled in stock for the periods indicated is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested, December 31, 2017 (1) 3,434,976 $ 12.90 Granted 1,058,045 $ 15.58 Vested (258,845 ) $ 12.61 Forfeited (470,543 ) $ 18.07 Unvested, December 31, 2018 (1) 3,763,633 $ 13.04 ______________________ (1) Included in unvested amounts are certain awards to employees and non-employee directors that are exercisable upon termination or retirement. The weighted-average grant date fair value of RSUs granted during 2017 and 2016 was $16.84 and $11.79 , respectively. The total fair value of RSUs vested during 2018 , 2017 and 2016 was $3.3 million , $1.4 million , and $5.8 million , respectively. Performance-Based RSUs —In 2018 , 2017 and 2016 , executive and non-executive officers were granted performance-based RSUs to be settled in common stock with target awards totaling 595,320 , 456,510 , and 701,110 ; respectively. The maximum payout at the end of the three -year performance period is 200% of a grantee’s target number of RSUs. The maximum payout for awards based on the TSR Measures described below is generally subject to a maximum cap of six times the value of the grantee’s target award on the grant date. The vesting of the performance-based RSUs granted in 2018 to each executive officer and non-executive will be based upon the cumulative growth in Radian’s book value per share, adjusted for certain defined items, over a three -year performance period. The vesting of approximately 50% of the performance-based RSUs granted to each executive officer in 2017 and 2016 is dependent upon (i) Radian Group’s TSR compared to the median TSR of a designated peer group of companies as of the date of grant (the “Relative TSR Measure”) and (ii) Radian Group’s absolute TSR (“Absolute TSR Measure,” and together with the Relative TSR Measure, the “TSR Measures”), in each case measured over a three -year performance period and subject to certain conditions. The remaining 50% of each executive officer’s target award will vest based on the cumulative growth in Radian’s book value per share, adjusted for certain defined items, over a three -year performance period. The vesting of performance-based RSUs granted to non-executives in 2017 is the same as described above for executive officers. The vesting of performance-based RSUs granted to non-executives in 2016 is entirely based on the TSR Measures described above and does not include a book value measure. The grant date fair value of the performance-based RSUs that are based on the cumulative growth in Radian’s book value per share is calculated based on the stock price as of the grant date, discounted for the lack of dividends earned over the vesting period and the one-year post-vesting holding period, as applicable. The compensation cost that is recognized over the remaining requisite service period is based on our expectations of the probable level of achievement of the performance condition. The grant date fair value of the performance-based RSUs that are based on TSR Measures is determined using a Monte Carlo valuation model using the following assumptions: 2017 2016 Expected life 3 years 3 years Risk-free interest rate (1) 1.6 % 0.9 % Volatility of Radian’s stock (2) 28.0 % 29.7 % Average volatility of peer companies (3) 30.6 % 38.2 % Dividend yield 0.06 % 0.08 % Discount rate (4) 10.7 % 10.7 % ______________________ (1) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (2) Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. (3) Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. (4) A discount is applied to executive officer awards to reflect illiquidity during the one-year post-vesting holding period. Also in 2017, 123,496 performance-based RSUs to be settled in common stock were granted to the Company’s former chief executive officer pursuant to the terms of his retirement agreement. Vesting for these performance-based RSUs only occurs if a stock price hurdle is met during the performance period, which begins 10 days prior to the first anniversary of the grant date and ends on the fifth anniversary of the grant date, or upon the death of the grantee or a change in control of the Company. The stock price hurdle requires that the closing price of our common stock on the New York Stock Exchange equals or exceeds 120% of the grant date share price, or $22.46 , for 10 consecutive trading days during the performance period. Time-Vested RSUs — Information with regard to grants of time-vested RSUs to be settled in common stock is as follows for the periods indicated: Year Ended December 31, 2018 2017 (1) 2016 (2) Time-vested RSUs granted to certain executives and non-executive officers 385,962 (1) 372,489 180,380 Time-vested RSUs granted to non-employee directors 76,763 (3) 68,337 356,040 (4) Total time-vested RSUs granted (5) 462,725 440,826 536,420 ______________________ (1) The time-vested RSU awards granted in 2018 and 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years . (2) The time-vested RSU awards granted in 2016 generally are subject to three-year cliff vesting. (3) The time-vested RSU awards granted in 2018 to non-employee directors generally are subject to one-year cliff vesting. (4) Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us). (5) The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period. Non-Qualified Stock Options Information with regard to stock options for the periods indicated is as follows: ($ in thousands, except per-share amounts) Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding, December 31, 2017 1,692,743 $ 8.16 Granted — $ — Exercised (375,573 ) $ 3.79 Forfeited (4,379 ) $ 14.38 Expired — $ — Outstanding, December 31, 2018 1,312,791 $ 9.39 4.9 $ 9,500 Exercisable, December 31, 2018 966,478 $ 7.91 4.0 $ 8,361 Available for grant, December 31, 2018 7,906,190 ______________________ (1) Based on the market price of $16.36 at December 31, 2018. The following table summarizes additional information concerning stock option activity for the periods indicated: Years Ended December 31, ($ in thousands, except per-share amounts) 2018 2017 2016 Granted (number of shares) — — 342,090 Weighted-average grant date fair value per share (1) $ — $ — $ 9.72 Aggregate intrinsic value of options exercised $ 6,274 $ 14,389 $ 1,519 Tax benefit of options exercised $ 1,318 $ 5,036 $ 532 Cash received from options exercised $ 1,425 $ 7,131 $ 717 ______________________ (1) We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 Derived service period (years) 3.02 - 4.00 Risk-free interest rate (a) 1.72 % Volatility (b) 94.20 % Dividend yield 0.08 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) Volatility is determined at the date of grant using historical share price volatility and expected life of each award. Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the treasury stock repurchase price. The following table summarizes information concerning outstanding and exercisable options at December 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 565,317 3.4 $ 2.45 565,317 $ 2.45 $5.76 - $7.06 — 0.0 $ — — $ — $10.42 - $15.44 578,612 6.0 $ 13.53 306,611 $ 14.74 $18.42 168,862 6.3 $ 18.42 20,000 $ 18.42 1,312,791 4.9 $ 9.39 891,928 $ 7.03 Generally, the stock option awards have a four -year vesting period, with 50% of the award vesting on or after the third anniversary of the grant date and the remaining 50% of the award vesting on or after the fourth anniversary of the grant date, provided the applicable stock price performance hurdle is met, as described below. The fair value of stock options vested during the year ended December 31, 2018 was $1.3 million , as compared to $3.3 million in 2017 and $1.3 million in 2016. There were no stock options granted in 2017 and 2018. For stock option awards granted in 2016 , in addition to the time-based vesting requirements, the options contain a performance hurdle whereby the options will only vest if the closing price of our common stock on the New York Stock Exchange exceeds approximately $15.20 ( 125% of the option exercise price) for 10 consecutive trading days ending on or after the third anniversary of the date of grant. Employee Stock Purchase Plan On May 9, 2018, stockholders of Radian approved the Amended and Restated Radian Group Inc. ESPP, which amended and restated the Radian Group Inc. 2008 Employee Stock Purchase Plan. Under this plan, we issued 103,668 ; 105,476 ; and 151,121 shares to employees during the years ended December 31, 2018 , 2017 and 2016 , respectively, and when amended in 2018, an additional 1,250,000 shares of our authorized but unissued common stock were reserved for issuance. In January 2019, we issued 51,187 shares from the shares available for issuance under our Amended and Restated Radian Group Inc. ESPP. As a result, 1,997,613 shares currently remain available for issuance under the Amended and Restated Radian Group Inc. ESPP. The Amended and Restated Radian Group Inc. ESPP is designed to allow eligible employees to purchase shares of our common stock at a discount of 15% off the lower of the fair market value of our common stock at the beginning or end of a six-month offering period (each period being the first and second six months in a calendar year). The following assumptions were used in our calculation of Employee Stock Purchase Plan compensation expense during 2018 : January 1, 2018 July 1, 2018 Expected life 6 months 6 months Risk-free interest rate 1.76 % 2.43 % Volatility 31.49 % 32.80 % Dividend yield 0.05 % 0.06 % Unrecognized Compensation Expense As of December 31, 2018 , unrecognized compensation expense related to the unvested portion of all of our share-based awards was $23.9 million . Absent a change of control under the Equity Plans, this expense is expected to be recognized over a weighted-average period of approximately 2.1 years |
Note 17 - Benefit Plans
Note 17 - Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans The Radian Group Inc. Savings Incentive Plan (“Savings Plan”) covers substantially all of our full-time and our part-time employees. Participants can contribute up to 100% of their base earnings as pretax and/or after-tax (Roth IRA) contributions up to a maximum amount of $18,500 for 2018 . The Savings Plan also includes a catch-up contribution provision whereby participants who are or will be age 50 and above during the Savings Plan year may contribute an additional contribution. The maximum catch-up contribution for the Savings Plan in 2018 was $6,000 . Effective January 1, 2018, we match up to 100% of the first 6.0% of base earnings contributed in any given year. Previously, in 2016 and 2017 the match was up to 100% of the first 4.5% of annual base earnings. Our expense for matching funds for the years ended December 31, 2018 , 2017 and 2016 was $6.1 million , $4.8 million and $4.9 million , respectively. Certain of the benefits of this plan are as follows: • allows for the immediate eligibility of new hire participation and provides for the automatic enrollment of eligible employees; • provides for the immediate vesting of matching contributions (including existing unvested matching contributions attributable to prior periods) and the elimination of all restrictions (other than Radian Group’s Insider Trading Policy) on a participant’s ability to diversify his/her position in matching contributions; and • permits Radian Group to make discretionary, pro rata (based on eligible pay) cash allocations to each eligible participant’s account, with vesting upon completion of three years of service with us. Other Contributions We contributed immaterial amounts to other postretirement benefit plans in 2018 |
Note 18 - Accumulated Other Com
Note 18 - Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Year Ended December 31, 2018 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting the accounting standard update for financial instruments 284 60 224 Cumulative effect of adopting the accounting standard update for the reclassification of certain tax effects — (2,724 ) 2,724 Balance adjusted for cumulative effect of adopting accounting standard updates 32,953 6,920 26,033 Other comprehensive income (loss) (“OCI”): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (123,235 ) (25,879 ) (97,356 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (13,000 ) (2,730 ) (10,270 ) Net unrealized gains (losses) on investments (110,235 ) (23,149 ) (87,086 ) Net foreign currency translation adjustments 5 1 4 Net actuarial gains (losses) 163 34 129 OCI (110,067 ) (23,114 ) (86,953 ) Balance at end of period $ (77,114 ) $ (16,194 ) $ (60,920 ) Year Ended December 31, 2017 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (19,063 ) $ (6,668 ) $ (12,395 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 46,235 14,332 31,903 Less: Reclassification adjustment for net gains (losses) included in net income (1) (4,065 ) (1,423 ) (2,642 ) Net unrealized gains (losses) on investments 50,300 15,755 34,545 Foreign currency translation adjustments: Unrealized foreign currency translation adjustments 225 75 150 Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income (2) (1,109 ) (388 ) (721 ) Net foreign currency translation adjustments 1,334 463 871 Net actuarial gains (losses) 98 34 64 OCI 51,732 16,252 35,480 Balance at end of period $ 32,669 $ 9,584 $ 23,085 Year Ended December 31, 2016 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (28,425 ) $ (9,948 ) $ (18,477 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 13,510 4,728 8,782 Less: Reclassification adjustment for net gains (losses) included in net income (1) 3,463 1,212 2,251 Net unrealized gains (losses) on investments 10,047 3,516 6,531 Net foreign currency translation adjustments (724 ) (250 ) (474 ) Net actuarial gains (losses) 39 14 25 OCI 9,362 3,280 6,082 Balance at end of period $ (19,063 ) $ (6,668 ) $ (12,395 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. (2) |
Note 19 - Statutory Information
Note 19 - Statutory Information Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Insurance Disclosure [Text Block] | Statutory Information We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required SAPP are established by a variety of NAIC publications, as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of December 31, 2018 , we did not have any prescribed or permitted statutory accounting practices that resulted in reported statutory surplus or risk-based capital being different from what would have been reported had NAIC statutory accounting practices been followed. Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct our mortgage insurance business. These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in the various states where our insurance subsidiaries are domiciled or licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory powers to state agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. The state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described below. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. As of December 31, 2018 , the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $3.6 billion of our consolidated net assets. The ability of Radian’s mortgage insurance subsidiaries to pay dividends on their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania’s insurance laws, dividends and other distributions may only be paid out of an insurer’s positive unassigned surplus, measured as of the end of the prior fiscal year, unless the Pennsylvania Insurance Commissioner approves the payment of dividends or other distributions from another source. On March 31, 2017, we reallocated $175 million of capital, in the form of cash and marketable securities, from Radian Guaranty to Radian Reinsurance. The reallocation was accomplished by way of an Extraordinary Distribution, approved by the Pennsylvania Insurance Department, from Radian Guaranty to Radian Group, and a simultaneous capital contribution from Radian Group to Radian Reinsurance in the same amount. These transactions resulted in a $175 million decrease in Radian Guaranty’s statutory policyholders’ surplus (i.e., statutory capital and surplus) and a corresponding increase in Radian Reinsurance’s statutory policyholders’ surplus. Until September 30, 2017, the reallocation of capital had no impact on Radian Guaranty’s Available Assets under the PMIERs, because Radian Reinsurance was considered an exclusive affiliated reinsurer of Radian Guaranty and, as such, Radian Guaranty’s Available Assets and Minimum Required Assets were determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and any exclusive affiliated reinsurers. However, effective in the third quarter of 2017, Radian Reinsurance is no longer considered an exclusive affiliated reinsurer of Radian Guaranty, due to its participation in the credit risk transfer programs with Fannie Mae and Freddie Mac. Although this change impacted Radian Guaranty’s Available Assets and Minimum Required Assets under the PMIERs, it did not affect Radian Guaranty’s compliance with the PMIERs financial requirements. At December 31, 2018 , although Radian Guaranty and Radian Reinsurance had statutory policyholders’ surplus of $814.1 million and $356.2 million , respectively, both companies had negative unassigned surplus balances, due primarily to the need for mortgage guaranty insurers to establish and maintain contingency reserves. Radian Guaranty had negative unassigned surplus of $701.9 million at December 31, 2018, compared to negative unassigned surplus of $765.0 million at December 31, 2017 . Radian Reinsurance, which began operations in December 2015, had negative unassigned surplus of $84.8 million at December 31, 2018 , compared to negative unassigned surplus of $112.1 million at December 31, 2017 . If either of these insurers had positive unassigned surplus as of the end of the prior fiscal year, such insurer only may pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: (i) 10% of the preceding year-end statutory policyholders’ surplus; or (ii) the preceding year’s statutory net income. Due to the negative unassigned surplus balances at the end of 2018 , no dividends or other distributions can be paid from Radian Guaranty or Radian Reinsurance without approval from the Pennsylvania Insurance Commissioner. In addition to the payment of the $175 million Extraordinary Distribution by Radian Guaranty in 2017, as described above, on December 21, 2018, Radian Guaranty distributed $450 million in capital, in the form of cash and marketable securities, to Radian Group. This transfer was approved by the Pennsylvania Insurance Department as an Extraordinary Distribution and resulted in a $450 million decrease in Radian Guaranty’s statutory policyholders’ surplus. Radian Reinsurance did not pay any dividends or other distributions in 2018 or 2017. Radian Guaranty Radian Guaranty is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer, restricted to writing first-lien residential mortgage guaranty insurance. Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum ratio of statutory capital relative to the level of net RIF, or Risk-to-capital. There are 16 RBC States that currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy a MPP Requirement. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million ); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer, such as Radian Guaranty, is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP Requirements, as applicable, in each of the RBC States as of December 31, 2018 . The NAIC is in the process of developing a new Model Act for mortgage insurers, which is expected to include, among other items, new capital adequacy requirements for mortgage insurers. In May 2016, a working group of state regulators released an exposure draft of this Model Act. The process for developing this framework is ongoing. While the outcome and timing of this process are uncertain, the new Model Act, if and when finalized by the NAIC, has the potential to increase capital requirements in those states that adopt the Model Act. However, we continue to believe the changes to the Model Act will not result in financial requirements that require greater capital than the level currently required under the PMIERs financial requirements. See Note 1 for information regarding the PMIERs, which set requirements for private mortgage insurers to remain approved insurers of loans purchased by the GSEs. Radian Guaranty’s statutory net income, statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income $ 501.9 $ 445.1 $ 480.8 Statutory policyholders’ surplus 814.1 1,201.0 1,349.7 Contingency reserve 2,109.9 1,667.0 1,260.6 Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. December 31, ($ in millions) 2018 2017 RIF, net (1) $ 40,711.3 $ 36,793.5 Common stock and paid-in capital $ 1,416.0 $ 1,866.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (701.9 ) (765.0 ) Statutory policyholders’ surplus 814.1 1,201.0 Contingency reserve 2,109.9 1,667.0 Statutory capital $ 2,924.0 $ 2,868.0 Risk-to-capital 13.9:1 12.8:1 ______________________ (1) Excludes risk ceded through all reinsurance programs (including with affiliates) and RIF on defaulted loans. Radian Guaranty’s statutory capital increased by $56.0 million in 2018, primarily due to Radian Guaranty’s statutory net income of $501.9 million during the year, partially offset by the $450 million in distribution of capital to Radian Group, as described above. The net increase in Radian Guaranty’s Risk-to-capital in 2018 was primarily due to the growth in IIF combined with the smaller overall increase in statutory capital due to the $450 million distribution of capital to Radian Group. Radian Guaranty’s net RIF increased during the year due to strong growth in NIW and IIF, partially offset by the increased reinsurance benefit pursuant to the Single Premium QSR Program and the Excess-of-Loss Program. We have actively managed Radian Guaranty’s capital position in various ways, including: (i) through internal and external reinsurance arrangements; (ii) by seeking opportunities to reduce our risk exposure through commutations and other negotiated transactions; and (iii) by contributing additional capital from Radian Group. In December 2017, Radian Group transferred $100 million of cash and marketable securities to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. This Surplus Note has a 0% interest rate and is scheduled to mature on December 31, 2027. The Surplus Note may be redeemed at any time upon 30 days prior notice, subject to the approval of the Pennsylvania Insurance Department. Radian Reinsurance Radian Reinsurance is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to reinsure policies of mortgage guaranty insurance. Radian Reinsurance is only licensed or authorized to write direct mortgage guaranty insurance in Pennsylvania. Radian Reinsurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income $ 86.1 $ 64.3 $ 60.3 Statutory policyholders’ surplus 356.2 328.9 147.6 Contingency reserve 293.5 234.0 180.3 Combined Risk-to-Capital Ratio and Other Mortgage Insurance Subsidiaries The Risk-to-capital ratio for our combined mortgage insurance operations was 12.8 to 1 as of December 31, 2018 , compared to 12.1 to 1 as of December 31, 2017 . In addition to Radian Guaranty and Radian Reinsurance, this combined ratio also includes Radian Guaranty Reinsurance, Radian Mortgage Assurance, Radian Investor Surety Inc., Radian Insurance and Radian Mortgage Guaranty Inc. Radian Insurance is the only other entity that had any remaining RIF as of December 31, 2018 , totaling $15.0 million . The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these five subsidiaries as of and for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income (loss) $ (2.8 ) $ 0.1 $ (6.1 ) Statutory policyholders’ surplus 58.0 58.6 57.1 Contingency reserve 1.7 1.7 1.5 EnTitle Insurance EnTitle Insurance’s statutory policyholders’ surplus and statutory net loss were $27.0 million and $1.8 million , respectively, as of and for the year ended December 31, 2018. Through EnTitle Insurance, we maintain escrow deposits as a service to our customers. Amounts held in escrow and excluded from assets and liabilities in our consolidated balance sheets totaled $4.7 million as of December 31, 2018 . These amounts were held at third-party financial institutions and not considered assets of the Company. Should one or more of the financial institutions at which escrow deposits are maintained fail, there is no guarantee that we would recover the funds deposited, whether through Federal Deposit Insurance Corporation coverage or otherwise. In the event of any such failure, we could be held liable for the disposition of these funds owned by third parties. Principal Differences between GAAP and SAPP The differences between the statutory financial statements and financial statements presented on a GAAP basis represent differences between GAAP and SAPP principally for the following reasons: (a) Under SAPP, mortgage insurance companies are required to establish a contingency reserve equal to 50% of premiums earned in each year, generally to be maintained for 10 years, whereas no such reserve is required under GAAP. (b) Under SAPP, insurance policy acquisition costs are charged against operations in the year incurred, and considered in the recognition of unearned premiums. Under GAAP, such costs are generally deferred and amortized. (c) Under SAPP, deferred tax assets are only recognized to the extent they are expected to be recovered within a one- to three-year period subject to a capital and surplus limitation. Changes in deferred tax assets and deferred tax liabilities are recognized as a direct benefit or charge to unassigned surplus, whereas under GAAP changes in deferred tax assets and deferred tax liabilities are generally recorded as a component of income tax expense. (d) Under SAPP, fixed-maturity investments are generally valued at amortized cost. Under GAAP, those investments are generally recorded at fair value. (e) |
Note 20 - Quarterly Financial D
Note 20 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) 2018 Quarters (In thousands, except per-share amounts) First Second Third Fourth Year Net premiums earned—insurance $ 242,550 $ 251,344 $ 258,431 $ 261,682 $ 1,014,007 Services revenue 33,164 36,828 36,566 38,414 144,972 Net investment income 33,956 37,473 38,995 42,051 152,475 Net gains (losses) on investments and other financial instruments (18,887 ) (7,404 ) (4,480 ) (11,705 ) (42,476 ) Provision for losses 37,283 19,337 20,881 27,140 104,641 Policy acquisition costs 7,117 5,996 5,667 6,485 25,265 Cost of services 23,126 24,205 25,854 24,939 98,124 Other operating expenses 63,243 70,184 70,125 77,266 280,818 Restructuring and other exit costs 551 925 4,464 113 6,053 Amortization and impairment of other acquired intangible assets 2,748 2,748 3,472 3,461 12,429 Net income 114,486 208,949 142,797 139,779 606,011 Diluted net income per share (1) $ 0.52 $ 0.96 $ 0.66 $ 0.64 $ 2.77 Weighted-average shares outstanding-diluted 219,883 217,830 217,902 217,883 218,553 2017 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 221,800 $ 229,096 $ 236,702 $ 245,175 $ 932,773 Services revenue 38,027 37,802 39,571 39,703 155,103 Net investment income 31,032 30,071 32,540 33,605 127,248 Net gains (losses) on investments and other financial instruments (2,851 ) 5,331 2,480 (1,339 ) 3,621 Provision for losses 46,913 17,222 35,841 35,178 135,154 Policy acquisition costs 6,729 6,123 5,554 5,871 24,277 Cost of services 28,375 25,635 27,240 23,349 104,599 Other operating expenses 68,377 68,750 64,195 65,999 267,321 Restructuring and other exit costs — — 12,038 5,230 17,268 Loss on induced conversion and debt extinguishment 4,456 1,247 45,766 — 51,469 Impairment of goodwill — 184,374 — — 184,374 Amortization and impairment of other acquired intangible assets 3,296 18,856 2,890 2,629 27,671 Net income (loss) 76,472 (27,342 ) 65,142 6,816 (2) 121,088 Diluted net income (loss) per share (1) $ 0.34 $ (0.13 ) $ 0.30 $ 0.03 (2) $ 0.55 Weighted-average shares outstanding-diluted 221,497 215,152 219,391 220,250 220,406 ______________________ (1) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. (2) |
Schedule I Summary Of Investmen
Schedule I Summary Of Investments | 12 Months Ended |
Dec. 31, 2018 | |
Schedule I Summary of Investments [Abstract] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Text Block] | Radian Group Inc. and Its Consolidated Subsidiaries Schedule I Summary of Investments—Other Than Investments in Related Parties December 31, 2018 Type of Investment Amortized Cost Fair Value Amount Reflected on the Consolidated Balance Sheet (In thousands) Fixed-maturities available for sale: Bonds: U.S. government and agency securities $ 85,532 $ 84,070 $ 84,070 State and municipal obligations 138,022 138,313 138,313 Corporate bonds and notes 2,288,720 2,229,885 2,229,885 RMBS 334,843 332,142 332,142 CMBS 546,729 539,915 539,915 Other ABS 712,748 704,662 704,662 Total securities available for sale 4,106,594 4,028,987 4,028,987 Trading securities 468,696 469,071 469,071 Equity securities: Common stocks 150,344 140,620 140,620 Total equity securities 150,344 140,620 140,620 Short-term investments (1) 538,977 538,796 538,796 Other invested assets 308 3,415 3,415 Total investments other than investments in related parties $ 5,264,919 $ 5,180,889 (2) $ 5,180,889 (2) ______________________ (1) Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (2) Includes $7.4 million of fixed maturity securities available for sale, $10.1 million of trading securities and $10.4 million |
Schedule II Financial Informati
Schedule II Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements Parent Only [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Condensed Balance Sheet Parent Company Only December 31, (In thousands, except per-share amounts) 2018 2017 Assets Investments Fixed-maturities available for sale—at fair value $ 321,401 $ 10,785 Trading securities—at fair value 56,011 — Equity securities—at fair value 29,375 — Short-term investments—at fair value 238,185 83,356 Total investments 644,972 94,141 Cash 32,352 13,173 Investment in subsidiaries, at equity in net assets (Note B) 3,927,268 3,764,865 Accounts and notes receivable (Note C) 101,072 103,561 Federal income taxes recoverable, net—current 49,381 35,741 Other assets (Note D) 58,993 166,051 Total assets $ 4,814,038 $ 4,177,532 Liabilities and Stockholders’ Equity Senior Notes (Note E) $ 1,030,348 $ 1,027,074 Federal income taxes—deferred 243,341 97,067 Other liabilities 51,634 53,353 Total liabilities 1,325,323 1,177,494 Common stockholders’ equity Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2018 and 2017; 231,132 and 233,417 shares issued at December 31, 2018 and 2017, respectively; 213,473 and 215,814 shares outstanding at December 31, 2018 and 2017, respectively 231 233 Treasury stock, at cost: 17,660 and 17,603 shares at December 31, 2018 and 2017, respectively (894,870 ) (893,888 ) Additional paid-in capital 2,724,733 2,754,275 Retained earnings 1,719,541 1,116,333 Accumulated other comprehensive income (loss) (60,920 ) 23,085 Total common stockholders’ equity 3,488,715 3,000,038 Total liabilities and stockholders’ equity $ 4,814,038 $ 4,177,532 Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only Year Ended December 31, (In thousands) 2018 2017 2016 Revenues: Net investment income $ 21,294 $ 22,528 $ 20,834 Net gains (losses) on investments and other financial instruments (470 ) (328 ) (150 ) Other income — 80 49 Total revenues 20,824 22,280 20,733 Expenses: Loss on induced conversion and debt extinguishment — 51,469 75,075 Interest expense 17,805 18,033 29,002 Total expenses (Note F) 17,805 69,502 104,077 Pretax gain (loss) from continuing operations 3,019 (47,222 ) (83,344 ) Income tax benefit (3,319 ) (141,437 ) (8,676 ) Equity in net income of affiliates 599,673 26,873 382,921 Net income 606,011 121,088 308,253 Other comprehensive income (loss), net of tax (86,953 ) 35,480 6,082 Comprehensive income $ 519,058 $ 156,568 $ 314,335 Schedule II—Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only Year Ended December 31, (In thousands) 2018 2017 2016 Net cash provided by (used in) operating activities 254,698 (23,654 ) 38,902 Cash flows from investing activities: Proceeds from sales of: Fixed-maturity investments available for sale 6,779 58,007 47,058 Trading securities — — 30,350 Equity securities — — 24,992 Proceeds from redemptions of: Fixed-maturity investments available for sale 12,391 60,414 49,578 Trading securities — — 10,000 Purchases of: Fixed-maturity investments available for sale (37,552 ) (134,456 ) (137,431 ) Sales, redemptions and (purchases) of : Short-term investments, net (131,164 ) 210,529 (40,288 ) Other assets, net (3,317 ) (1,107 ) 239 Capital distributions from subsidiaries — 924 15,000 Capital contributions to subsidiaries (30,338 ) (21,643 ) (1,500 ) Acquisition of subsidiaries — — (30,443 ) (Issuance) repayment of note receivable from affiliate (Note C) — (44 ) 201,631 Net cash provided by (used in) investing activities (183,201 ) 172,624 169,186 Cash flows from financing activities: Dividends paid (2,140 ) (2,154 ) (2,105 ) Issuance of senior notes, net — 442,163 343,417 Purchases and redemptions of senior notes — (593,527 ) (445,072 ) Proceeds from termination of capped calls — 4,208 — Issuance of common stock 1,385 7,132 717 Purchases of common shares (50,053 ) (6 ) (100,188 ) Credit facility commitment fees paid (1,510 ) (1,993 ) — Excess tax benefits from stock-based awards (Note A) — — 98 Net cash provided by (used in) financing activities (52,318 ) (144,177 ) (203,133 ) Increase (decrease) in cash and restricted cash 19,179 4,793 4,955 Cash and restricted cash, beginning of period 13,173 8,380 3,425 Cash and restricted cash, end of period $ 32,352 $ 13,173 $ 8,380 Schedule II—Financial Information of Registrant Parent Company Only Supplemental Notes Note A The Radian Group Inc. (the “Parent Company”, “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto. Note B During 2018, the Parent Company made total capital contributions of $98.1 million to its subsidiaries. This amount included a $30.3 million cash contribution to Radian Title Services Inc., part of which was used to acquire EnTitle Direct in March 2018, and a $1.7 million capital contribution to Enhance Financial Services Group Inc. in lieu of receiving tax payments due under our tax sharing agreement. We also effectively contributed $66.1 million to Clayton Group Holdings Inc. to reflect the impairment of the interest receivable on our intercompany note that was recorded during 2018 of $17.8 million and the outstanding intercompany receivable balance of $48.3 million representing the services segment’s share of unreimbursed direct and allocated costs. During 2018, the Parent Company received a $450.0 million distribution from Radian Guaranty, which included $55.4 million of cash and $394.6 million of marketable securities. Under the cumulative earnings approach, we considered this distribution to be a return on investment and classified as operating cash flow. The Parent Company also received tax payments of $229.6 million from its subsidiaries under our tax sharing agreement. During 2017, the Parent Company made total capital contributions of $521.0 million to its subsidiaries. This amount included a $175.0 million contribution to Radian Reinsurance, consisting of $21.4 million of cash and $153.6 million of marketable securities, and a $0.2 million cash contribution to Radian Mortgage Assurance. The Parent Company also made a $3.1 million capital contribution to Enhance Financial Services Group Inc. in lieu of receiving tax payments due under our tax sharing agreement. We also effectively contributed $342.7 million to Clayton Group Holdings Inc. to reflect the impairment of our $300 million intercompany note receivable and $42.7 million of interest receivable on the intercompany note as of December 31, 2017. During 2017, the Parent Company received a $175.0 million distribution from Radian Guaranty, which included $21.4 million of cash and $153.6 million of marketable securities, all of which was subsequently contributed to Radian Reinsurance. In addition, the Parent Company liquidated three of its subsidiaries and received liquidating dividends totaling $26.5 million . This amount reflected liquidating dividends from Radian Mortgage Insurance, Radian Mortgage Reinsurance Company and RDN Investments, Inc. of $24.9 million , $1.0 million and $0.6 million , respectively, and included cash dividends of $2.7 million , $0.6 million and $0.5 million , respectively, and the distribution of deferred and current tax recoverables of $22.2 million , $0.4 million and $0.1 million , respectively. The Parent Company also received tax payments of $50.7 million from its subsidiaries under our tax sharing agreement. Note C Accounts and notes receivable included a $300 million note receivable from Clayton Group Holdings Inc. as of December 31, 2018 and 2017 . This represents the original principal amount related to the Senior Notes due 2019, which funded the acquisition of Clayton in June 2014. Interest on the note is payable semi-annually on June 1 and December 1. The interest payment represents coupon interest plus issuance costs (amortized on a straight line basis over the term of the note). The principal is due on June 1, 2019 although, in the event of non-payment, the note terms reflect that the note remains outstanding and continues to accrue interest at the coupon rate. The Services segment has not generated sufficient cash flow to reimburse the Parent Company for its share of its direct and allocated operating expenses and interest expense, and we do not expect that the Services segment will be able to bring its reimbursement obligations current in the foreseeable future. Therefore, we have recorded an allowance against the outstanding balance of the $300 million note receivable at December 31, 2018 and 2017 . Accounts and notes receivable also included, as of December 31, 2018 and 2017 , a $100 million Surplus Note from Radian Guaranty. In December 2017, the Parent Company transferred $100 million of primarily marketable securities and a small amount of cash to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. See Note 19 of Notes to Consolidated Financial Statements for additional information related to the Surplus Note. Note D Other assets decreased as of December 31, 2018, compared to December 31, 2017, by $107.1 million , primarily as a result of the settlement of the Company’s dispute related to the IRS Matter and the Company’s utilization of its $88.6 million of “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS. In 2019, the Company expects the IRS to refund the remaining $58 million that was previously on deposit. Also contributing to this decrease was a $28.7 million net decrease in the intercompany receivable balance primarily related to the Services segment (See Notes C and F for additional information), offset by increases in other assets. As disclosed above in Note C, the Services segment has not generated sufficient cash flow to reimburse the Parent Company for its share of a portion of its direct and all of its allocated operating expenses and interest expense related to the $300 million note receivable. Therefore, at December 31, 2018 and 2017, we recorded an allowance of $60.5 million and $42.7 million , respectively, against the outstanding balance of the interest receivable. During 2018, the intercompany receivable balance reflected an increase in the balance due related to the Services segment’s share of direct and allocated operating expenses of $13.0 million and $8.5 million , which was advanced to the Services segment and used for the acquisition of Independent Settlement Services and Five Bridges in the fourth quarter of 2018. At December 31, 2018, we recorded an allowance of $48.3 million against the entire outstanding intercompany receivable balance from Clayton Group Holdings Inc., which represented the Services segments’ share of unreimbursed direct and allocated operating expenses. Note E During 2017, the Parent Company successfully completed a series of transactions to strengthen its capital position, including reducing its overall cost of capital and improving the maturity profile of its debt. See Notes 12 and 15 of Notes to Consolidated Financial Statements for additional information on our loss on induced conversion and debt extinguishment, senior notes and capital stock. At December 31, 2018 , the maturities of the principal amount of our senior notes in future years are as follows: (In thousands) 2019 $ 158,623 2020 234,126 2021 197,661 2024 450,000 Total $ 1,040,410 Note F The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries expenses it incurs in the capacity of supporting those subsidiaries, including operating expenses, which are allocated based on the forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on certain subsidiaries, and interest expense, which is allocated based on relative capital. These expenses are presented net of allocations in the Statements of Operations. Substantially all operating expenses and most of our interest expense, except for discount amortization on our senior notes, have been allocated to the subsidiaries for 2018 , 2017 and 2016 . Amounts allocated to the subsidiaries for expenses are based on actual cost, without any mark-up. The Parent Company considers these charges fair and reasonable. The subsidiaries generally reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment. See Note D for additional information. The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated: Year Ended December 31, (in thousands) 2018 2017 2016 Allocated operating expenses $ 94,815 $ 72,764 $ 56,446 Allocated interest expenses 42,195 44,686 52,092 Total allocated expenses $ 137,010 $ 117,450 $ 108,538 Interest expense was relatively unchanged in 2018 as compared to 2017 . Interest expense during 2017 and 2016 reflected the discount amortization on our senior notes, as well as coupon interest attributable to the Convertible Senior Notes due 2019 and the Senior Notes due 2019. The reduction in interest expense in 2017 as compared to 2016 was primarily attributable to lower expense following the induced conversion and extinguishment of $21.6 million of our remaining Convertible Senior Notes due 2017 in the second quarter of 2017 and the redemption of the remaining $68.0 million of our Convertible Senior Notes due 2019 during January 2017. Note G We, and certain of our subsidiaries, have entered into the following intercompany guarantees: • Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5 million of statutory policyholders’ surplus every calendar quarter. Radian Mortgage Assurance had $8.7 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2018. • To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including mortgage-backed securities), we have been required, depending on the amount of credit enhancement we were providing, to provide: (i) audited financial statements for the insurance subsidiary participating in these transactions or (ii) a full and unconditional holding-company level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty with $87.8 million of aggregate remaining credit exposure as of December 31, 2018. • |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Insurance Premiums Earned [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block] | Radian Group Inc. Schedule IV—Reinsurance Insurance Premiums Earned Years Ended December 31, 2018 , 2017 and 2016 ($ in thousands) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Assumed 2018 $ 1,074,298 $ 67,195 $ 6,904 $ 1,014,007 0.68 % 2017 $ 990,016 $ 57,271 $ 28 $ 932,773 0.00 % 2016 $ 999,093 $ 77,359 $ 35 $ 921,769 0.00 % |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Title Insurance - Premiums and Reserves for Losses [Policy Text Block] | Title Insurance – Premiums and Reserve for Losses and LAE Title insurance premiums are typically due and earned in full when the real estate transaction is closed. Premiums generally are calculated with reference to the policy amount. The premium charged by a title insurer or an agent is subject to regulation in most areas. Such regulations vary from state to state. |
Basis of Presentation | Basis of PresentationOur consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. |
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Losses and LAE We establish reserves to provide for losses and LAE, which include the estimated costs of settling claims in our Mortgage Insurance segment, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. Estimating our loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. For example, our mortgage insurance loss reserves generally increase as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Commutations and other negotiated terminations of our insured risks in our Mortgage Insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history, and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default and type of insurance (i.e., primary or pool). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. With respect to new defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma received from September 2017 through February 2018, we assume a lower gross Default to Claim Rate than for new defaults with similar characteristics from other areas, due to our expectations based on past experience with other natural disasters, that a significant portion of these defaults will not result in claims. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments in the ordinary course. Although we believe that our Loss Mitigation Activities are justified under our policies, certain challenges have resulted in disputes and litigation, which if resolved unfavorably to us, could require us to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 11 for additional information. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default unless a reserve for premium deficiency is required. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “— Reserve for Premium Deficiency” below for an exception to this general principle. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions, Claim Denials and Claim Curtailments that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a Claim Denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. The impact to our reserve due to estimated future Loss Mitigation Activities incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our insurance written in years prior to and including 2008. The level of Rescissions, Claim Denials and Claim Curtailments has been declining in recent periods as our defaults related to insurance written in years prior to and including 2008 continue to decline, and we expect this trend to continue. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim Curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed Rescissions, Claim Denials and Claim Curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial, Claim Curtailments and Claim Severity estimates, which are based on historical trends, as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends and determines how they should be considered in its reserve estimates. |
Reserve For Premium Deficiency | Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. Available for sale securities, trading securities, equity securities and certain other assets are recorded at fair value as described in Note 5 . All changes in fair value of trading securities, equity securities (effective January 1, 2018) and certain other assets are included in our consolidated statements of operations. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss) |
Insurance Premiums-Revenue Recognition | Insurance Premiums—Revenue Recognition Mortgage insurance premiums written on an annual or multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premium s written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written on an annual or multi-year basis are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is expensed in proportion to estimated gross profits over the estimated life of the policies. Ceding commissions received under our reinsurance arrangements related to these costs are also deferred and accounted for using similar assumptions. See Notes 8 and 9 for additional details. Estimates of expected gross profit, including the Persistency Rate and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. |
Revenue Recognition, Sales of Services [Policy Text Block] | Our Services segment revenues are recognized over time and measured each period based on the progress to date as services are performed and made available to customers. Our contracts with customers, including payment terms, are generally short-term in nature; therefore, any impact related to timing is immaterial. Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Revenue recognized related to services performed and not yet billed is recorded in unbilled receivables and reflected in other assets. We have no material bad-debt expense. The following represents balances related to Services contracts as of the dates indicated: (In thousands) December 31, 2018 December 31, 2017 Accounts Receivable - Services Contracts $ 15,461 $ 17,391 Unbilled Receivables - Services Contracts 19,917 22,257 Deferred Revenues - Services Contracts 3,204 3,235 Revenue expected to be recognized in any future period related to remaining performance obligations, such as contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. Fee-for-Service Contracts Generally, our contracts with our clients do not include minimum volume commitments and can be terminated at any time by our clients. Although some of our contracts and assignments are recurring in nature, and include repetitive monthly assignments, a significant portion of our engagements are transactional in nature and may be performed in connection with securitizations, loan sales, loan purchases or other transactions. Due to the transactional nature of our business, our Services segment revenues may fluctuate from period to period as transactions are commenced or completed. We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs, because we do not take control of the service prior to the client taking control. We record an expense if an advance is made by us that is not in accordance with a client contract, and the client is not obligated to reimburse us. Due to the nature of the services provided, our Services arrangements with customers may include any of the following three basic types of contracts: Fixed-Price Contracts. We use fixed-price contracts in our real estate valuation and component services, our loan review, underwriting and due diligence services as well as our title and closing services. We also use fixed-price contracts in our surveillance business for our servicer oversight services and RMBS surveillance services, and in our asset management business activities. Under fixed-price contracts we agree to perform the specified services and deliverables for a pre-determined per-unit or per-file price or day rate. Each service qualifies as a separate performance obligation and revenue is recognized as the service performed is made available to the client. Time-and-Expense Contracts. The Services segment also derives a portion of its revenue from professional service activities under time-and-expense contracts. In these types of contracts, we are paid a fixed hourly rate, and we are reimbursed for billable out-of-pocket expenses as work is performed. These contracts are used in our loan review, underwriting and due diligence services. Services revenue consisting of billed time fees and pass-through expenses is recorded over time and based on the progress to date as services are performed and made available to customers. Services revenue may also include expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. Percentage-of-Sale Contracts. Under percentage-of-sale contracts, we are paid a contractual percentage of the sale proceeds upon the sale of each property. These contracts are only used for a portion of our REO management services and our real estate brokerage services. In addition, through the use of our proprietary technology, property leads are sent to select clients. Revenue attributable to services provided under a percentage-of-sale contract is recognized over time and measured based on the progress to date and typically coincides with the client’s successful closing on the property. The revenue recognized for these transactions is based on a percentage of the sale. In certain instances, fees are received at the time that an asset is assigned to Radian for management. These fees are recorded as deferred revenue and are recognized over time based on progress to date and the availability to customers. Cost of Services Cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients in our Services segment. Cost of services also includes costs paid to outside vendors, including real estate |
Income Taxes | Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. In regards to accumulated other comprehensive income, the Company’s policy for releasing disproportionate income tax effects is to release the effects as individual items are sold. We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2018 and 2017. When estimating our full year 2018 and 2017 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for as Discrete Items at the applicable federal tax rate. |
Commitments and Contingencies, Policy [Policy Text Block] | We are routinely involved in a number of legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. In the course of our regular review of pending legal and regulatory matters, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. |
Foreign Currency Revaluation/Translation | Foreign Currency Revaluation/TranslationAssets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Restricted Cash Included in our restricted cash balances as of December 31, 2018 were: (i) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (ii) funds held in trust for the benefit of certain policyholders; (iii) escrow funds held for servicer liabilities; and (iv) escrow funds held for title services obligations. Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2018 of $107.0 million comprise cash and restricted cash of $95.4 million and $11.6 million , respectively, as shown on the consolidated balance sheet as of December 31, 2018 . Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2017 of $96.2 million comprise cash and restricted cash of $80.5 million and $15.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2017 . |
Investments | Investments We group fixed-maturity securities in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity, if any, are classified as held to maturity and are reported at amortized cost. Trading securities are securities that are purchased and held primarily for the purpose of selling them in the near term, and are reported at fair value, with unrealized gains and losses reported as a separate component of income. Investments in fixed-maturity securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders’ equity as accumulated other comprehensive income (loss). Equity securities consist of holdings in common stock, preferred stock and exchange traded funds, which, effective January 1, 2018, are all recorded at fair value with unrealized gains and losses reported in income. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities that were available for sale were classified in accumulated other comprehensive income. Short-term investments consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of 12 months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on the fair value of investments. We record an other-than-temporary impairment adjustment on a security with an unrealized loss if we intend to sell the impaired security, if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the amortized cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following: • the extent and the duration of the decline in value; • the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and • the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events. |
Securities Borrowed and Loaned Policy [Policy Text Block] | Securities Lending Agreements Securities lending agreements, in which we loan certain securities in our investment portfolio to third parties for short periods of time in exchange for collateral consisting of cash and other securities, are treated as collateralized financing arrangements in our consolidated balance sheets. In all of our securities lending agreements, the securities that we transfer to Borrowers (loaned securities) may be transferred or loaned by the Borrowers; however, pursuant to the terms of these agreements, we maintain effective control over all loaned securities, including: (i) retaining ownership of the securities; (ii) receiving the related investment or other income; and (iii) having the right to request the return of the loaned securities at any time. We report such securities within other assets in our consolidated balance sheets. We receive cash or other securities as collateral for such loaned securities. Any cash collateral may be invested in liquid assets. Cash collateral, which is reinvested for our benefit by the intermediary in accordance with the investment guidelines contained in the securities lending and collateral agreements, is reflected in short-term investments, with an offsetting liability recognized in other liabilities for the obligation to return the cash collateral to the Borrower. Securities collateral we receive from Borrowers is held on deposit for the Borrower’s benefit and we may not transfer or loan such securities collateral unless the Borrower is in default. Therefore, such securities collateral is not reflected in our consolidated financial statements given that the risks and rewards of ownership are not transferred to us from the Borrowers. See Note 6 for additional information. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts and notes receivable primarily consist of accrued premiums receivable due from our mortgage insurance customers, amounts billed and due from our Services customers for services our Services segment has performed, and profit commission receivable, if any, related to our reinsurance transactions. See Note 8 for details. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. Accounts and notes receivable exclude unbilled receivables totaling $19.9 million |
Company-Owned Life Insurance | Company-Owned Life Insurance (“COLI”)We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer hardware and software is generally depreciated over three or five years , furniture and fixtures is depreciated over seven years , and office equipment is depreciated over five years |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Acquired Intangible Assets, Net Goodwill and other acquired intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized, and includes the value of discounted expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment at the reporting unit level. A reporting unit represents a business for which discrete financial information is available; more than one reporting unit may be aggregated into a single reporting unit if they have similar economic characteristics. Events that could result in an interim assessment of goodwill impairment and/or a potential impairment charge include, but are not limited to: (i) significant under-performance relative to historical or projected future operating results; (ii) significant changes in the strategy for the Services segment; (iii) significant negative industry or economic trends; and (iv) a decline in Radian’s market capitalization below book value if such decline is attributable to the Services segment. Management regularly updates certain assumptions related to our projections, including the likelihood of achieving the assumed potential revenues from new initiatives and business strategies, and if these or other items have a significant negative impact on the reporting unit’s projections we may perform additional analysis to determine whether an impairment charge is needed. Lower earnings over sustained periods also can lead to impairment of goodwill, which could result in a charge to earnings. The value of goodwill is primarily supported by revenue projections, which are mostly driven by projected transaction volume and margins. In performing the interim quantitative analysis for our goodwill impairment test as of June 30, 2017, we elected to early adopt the update to the accounting standard regarding goodwill and other intangibles, which simplified the subsequent measurement of goodwill by eliminating step two of the goodwill impairment test. Under this guidance, if indicators for impairment are present, we perform a quantitative analysis to evaluate our long-lived assets for potential impairment, and then determine the amount of the goodwill impairment by comparing a reporting unit’s fair value to its carrying amount. After adjusting the carrying value for any impairment of other intangibles or long-lived assets, an impairment charge is recognized for any excess of the reporting unit’s carrying amount over the reporting unit’s estimated fair value, up to the full amount of the goodwill allocated to the reporting unit. Intangible assets, other than goodwill, primarily consist of customer relationships, technology, trade name and trademarks, client backlog and non-competition agreements. Customer relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. Technology represents proprietary software used for loan review, underwriting and due diligence, managing the REO disposition process, performing surveillance of mortgage loan servicers, real estate valuations and client workflow solutions. Trade name and trademarks primarily reflect the value inherent in the recognition of the “Clayton” name and its reputation. For purposes of our intangible assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on loans currently under surveillance or REO assets under management. The value of a non-competition agreement is an appraisal of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. The calculation of the estimated fair value of goodwill and other acquired intangibles is performed primarily using an income approach and requires the use of significant estimates and assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market conditions. The most significant assumptions relate to the valuation of customer relationships. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. |
Accounting for Stock-Based Compensation | Accounting for Share-Based Compensation The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. For share-based awards with performance conditions related to our own operations, the expense recognized is dependent on the probability of the performance measure being achieved. Compensation cost is generally recognized over the periods that an employee provides service in exchange for the award. |
Debt, Policy [Policy Text Block] | Purchases of Convertible Debt Prior to MaturityWe account for the purchases of our outstanding convertible debt as induced conversions of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognize a loss on induced conversion and debt extinguishment equal to the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt. |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance We cede insurance risk through the use of reinsurance contracts and follow reinsurance accounting for those transactions where significant risk is transferred. Loss reserves and unearned premiums are established before consideration is given to amounts related to our reinsurance agreements. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | We perform an evaluation to determine whether we are required to consolidate the VIE’s assets and liabilities in our consolidated financial statements, based on whether we are deemed to be the primary beneficiary. The primary beneficiary of a VIE is the variable interest holder that is determined to have the controlling financial interest as a result of having both (i) the power to direct the activities of a VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or right to receive benefits from the VIE that potentially could be significant to the VIE. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring and Other Exit CostsRestructuring and other exit costs include items such as asset impairment charges (including loss from the sale of a business line), employee severance and benefit costs, facility and lease termination costs, contract terminations and other costs of restructuring or exiting activities. The timing of the future expense and associated cash payments for restructuring and other exit costs is dependent on the type of exit cost. We review assets for impairment in accordance with the accounting guidance for long-lived assets. The loss on sale of a business line is calculated by the excess of its carry amount over the sale price. Generally, our employee severance and benefit costs are part of the Company’s ongoing benefit arrangement and are recognized when probable and estimable. A liability for facility and lease contract termination costs is recognized at the date we cease the use of rights conveyed by the contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. Other contract termination and exit costs include future costs that will be incurred, which are recognized in total when they no longer will benefit the Company. The liabilities for restructuring and other exit costs are recorded in other liabilities. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Accounting Standards Adopted During 2018 . In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. In July 2015, the FASB delayed the effective date for this updated standard for public companies to interim and annual periods beginning after December 15, 2017, and subsequently issued various clarifying updates. Our adoption of this standard, effective January 1, 2018, had no impact on our financial statements. The disclosures required by this update are included above in “—Revenue Recognition — Services.” In January 2016, the FASB issued an update that makes certain changes to the standard for the accounting of financial instruments. Among other things, the update requires: (i) equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; and (iv) separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The update also eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. This update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In February 2018, the FASB issued technical corrections related to this update, which addresses common questions regarding the application and adoption of the new guidance and the subsequent amendments. As a result of adopting these updates, equity securities are no longer classified as available for sale securities and changes in fair value are recognized through earnings. Consequently, we recorded a cumulative effect adjustment to retained earnings from accumulated other comprehensive income representing unrealized losses related to equity securities in the amount of $0.2 million , net of tax. In addition, we elected to utilize net asset value as a practical expedient to measure certain other investments, which resulted in an increase to other invested assets with an offset to retained earnings in the amount of $2.3 million , net of tax. Our adoption of both of these updates, effective January 1, 2018, resulted in a net increase to retained earnings of $2.1 million . See Notes 5 and 6 for additional information. In January 2017, the FASB issued an update to the accounting standard regarding business combinations. This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied prospectively as of the beginning of the period of adoption. We adopted this update effective January 1, 2018 and it did not have a material impact on our financial statements. In February 2018, the FASB issued an update to the accounting standard regarding income statement reporting of comprehensive income and reclassification of certain tax effects from accumulated other comprehensive income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The provisions of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, for reporting periods for which financial statements have not been available for issuance. We elected to early adopt this update effective January 1, 2018. As a result we recorded a reclassification adjustment from accumulated other comprehensive income to retained earnings in the amount of $2.7 million . See Note 10 for additional information regarding the TCJA. In August 2018, the FASB issued an update to the accounting standard regarding the disclosure requirements for fair value measurements. The amendments in this update remove certain disclosure requirements regarding transfers between Level I and Level II assets as well as the requirement to disclose the valuation process for Level III assets. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We elected to early adopt the full update as of December 31, 2018 and it did not have a material impact on our financial statements or disclosures. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | In February 2016, the FASB issued an update that replaces the existing accounting and disclosure requirements for leases of property, plant and equipment. The update requires lessees to recognize, as of the lease commencement date, assets and liabilities for all leases with lease terms of more than 12 months, which is a change from the current GAAP requirement to recognize only capital leases on the balance sheet. Leases are required to be classified as either operating or finance, with expense on operating leases recorded as a single lease cost on a straight-line basis. For finance leases, interest expense on the lease liability is required to be recognized separately from the straight-line amortization of the right-of-use asset. Quantitative disclosures are required for certain items, including the cost of leases, the weighted-average remaining lease term, the weighted-average discount rate and a maturity analysis of lease liabilities. Additional qualitative disclosures are also required regarding the nature of the leases, such as basis, terms and conditions of: (i) variable interest payments; (ii) extension and termination options; and (iii) residual value guarantees. In July 2018 the FASB issued a further update containing certain targeted improvements to the accounting and disclosure requirements for leases, including an additional (and optional) transition method to recognize the cumulative-effect adjustment as of the beginning of the period of adoption, rather than recognizing the cumulative-effect adjustment as of the beginning of the earliest comparative period presented. We expect to elect the optional transition method to recognize the cumulative-effect adjustment as of the beginning $50 million , which represents a right of use asset, and a corresponding net increase in other liabilities for the same amount. The net increase of approximately $50 million in other liabilities represents a discounted lease liability of approximately $74 million from operating leases, primarily for our various facilities, which represents the present value of these future lease payments discounted at our incremental borrowing rate, partially offset by an adjustment for unamortized allowances and incentives. Additionally, upon adoption we expect to expand our financial statement disclosures as required by the amendments, as well as implement any necessary changes to our control environment and reporting processes to reflect the requirements of the amendments. See Note 14 for additional information about our leases. However, we do not expect the adoption of this standard to impact our stockholders’ equity, results of operations or liquidity. In addition, we expect to elect the practical expedients for transitioning existing leases to the new standard as of the effective date. As a result of applying the practical expedients: (i) we are not required to reassess expired or existing contracts to determine if they contain additional leases; (ii) we are not required to reassess the lease classification for expired and existing leases; and (iii) we are not required to reassess initial direct costs for existing leases. The update is effective for us on January 1, 2019 and upon our adoption, we expect to record an increase in other assets of approximately $50 million , which represents a right of use asset, and a corresponding net increase in other liabilities for the same amount. The net increase of approximately $50 million in other liabilities represents a discounted lease liability of approximately $74 million from operating leases, primarily for our various facilities, which represents the present value of these future lease payments discounted at our incremental borrowing rate, partially offset by an adjustment for unamortized allowances and incentives. Additionally, upon adoption we expect to expand our financial statement disclosures as required by the amendments, as well as implement any necessary changes to our control environment and reporting processes to reflect the requirements of the amendments. See Note 14 for additional information about our leases. of the period of adoption. $50 million , which represents a right of use asset, and a corresponding net increase in other liabilities for the same amount. The net increase of approximately $50 million in other liabilities represents a discounted lease liability of approximately $74 million from operating leases, primarily for our various facilities, which represents the present value of these future lease payments discounted at our incremental borrowing rate, partially offset by an adjustment for unamortized allowances and incentives. Additionally, upon adoption we expect to expand our financial statement disclosures as required by the amendments, as well as implement any necessary changes to our control environment and reporting processes to reflect the requirements of the amendments. See Note 14 for additional information about our leases. In June 2016, the FASB issued an update to the accounting standard regarding the measurement of credit losses on financial instruments and certain other assets. This update requires that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities are to be recorded through an allowance for credit losses, rather than a write-down of the asset, with the amount of the allowance limited to the amount by which fair value is less than amortized cost. This update is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This update is not applicable to credit losses associated with our mortgage insurance policies. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In March 2017, the FASB issued an update to the accounting standard regarding receivables. The new standard requires certain premiums on purchased callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The provisions of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this update to have a material effect on our financial statements and disclosures. In August 2018, the FASB issued an update to the accounting standard regarding the accounting for long-duration insurance contracts. The new standard: (i) requires that assumptions used to measure the liability for future policy benefits be reviewed at least annually; (ii) defines and simplifies the measurement of market risk benefits; (iii) simplifies the amortization of deferred acquisition costs; and (iv) enhances the required disclosures about long-duration contracts. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this update. In August 2018, the FASB issued an update to the accounting standard regarding the capitalization of implementation costs for activities performed in a cloud computing arrangement that is a service contract. The new standard aligns the accounting for implementation costs of hosting arrangements that are service contracts with the accounting for capitalizing internal-use software. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential impact of the adoption of this update and do not expect it to have a material effect on our financial statements and disclosures. |
Note 14 - Commitments and Con_2
Note 14 - Commitments and Contingencies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | We are routinely involved in a number of legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. In the course of our regular review of pending legal and regulatory matters, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. |
Note 2 - Significant Accounti_3
Note 2 - Significant Accounting Policies Revenue Recognition-Services (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Balances Related to Services Contracts [Table Text Block] | The following represents balances related to Services contracts as of the dates indicated: (In thousands) December 31, 2018 December 31, 2017 Accounts Receivable - Services Contracts $ 15,461 $ 17,391 Unbilled Receivables - Services Contracts 19,917 22,257 Deferred Revenues - Services Contracts 3,204 3,235 |
Services Revenue [Table Text Block] | The table below represents the disaggregation of Services revenues by revenue type: Year Ended December 31, (In thousands) 2018 2017 2016 Services segment revenue Mortgage Services $ 80,314 $ 83,405 $ 102,244 Real Estate Services 58,874 55,095 58,056 Title Services 10,263 23,333 16,949 Total (1) $ 149,451 $ 161,833 $ 177,249 ______________________ (1) Includes inter-segment revenues of $3.2 million , $6.7 million , and $8.4 million in 2018 , 2017 and 2016 , respectively. For 2018, amounts exclude $7.7 million of Services segment net premiums earned—insurance and net investment income, as both are excluded from the scope of the revenue recognition standard. See Note 4 |
Note 3 - Net Income Per Share (
Note 3 - Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted net income per share was as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except per-share amounts) Net income — basic $ 606,011 $ 121,088 $ 308,253 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) — (215 ) 5,816 Net income — diluted $ 606,011 $ 120,873 $ 314,069 Average common shares outstanding — basic 214,267 215,321 211,789 Dilutive effect of Convertible Senior Notes due 2017 — 323 207 Dilutive effect of Convertible Senior Notes due 2019 — 457 14,263 Dilutive effect of stock-based compensation arrangements (2) 4,286 4,305 2,999 Adjusted average common shares outstanding—diluted 218,553 220,406 229,258 Net income per share: Basic $ 2.83 $ 0.56 $ 1.46 Diluted $ 2.77 $ 0.55 $ 1.37 ______________________ (1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. Included in the year ended December 31, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Year Ended December 31, (In thousands) 2018 2017 2016 Shares of common stock equivalents 337 353 1,042 |
Note 4 - Segment Reporting Le_2
Note 4 - Segment Reporting Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized operating results for our segments as of and for the years ended, as applicable, were as follows: December 31, 2018 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) $ 991,021 $ 7,286 (2) $ 998,307 (Increase) decrease in unearned premiums 15,700 — (2) 15,700 Net premiums earned—insurance 1,006,721 7,286 (2) 1,014,007 Services revenue — 148,217 148,217 Net investment income 152,102 373 (2) 152,475 Other income 2,794 1,234 (2) 4,028 Total (3) (4) 1,161,617 157,110 1,318,727 Provision for losses 104,547 408 (2) 104,955 Policy acquisition costs 25,265 — 25,265 Cost of services — 98,692 98,692 Other operating expenses before corporate allocations 135,372 53,250 188,622 Restructuring and other exit costs (5) — 2,100 2,100 Total (4) 265,184 154,450 419,634 Adjusted pretax operating income (loss) before corporate allocations 896,433 2,660 899,093 Allocation of corporate operating expenses 80,134 11,974 92,108 Allocation of interest expense 43,685 17,805 61,490 Adjusted pretax operating income (loss) $ 772,614 $ (27,119 ) $ 745,495 Total assets $ 6,138,679 $ 175,973 $ 6,314,652 ______________________ (1) Net of ceded premiums written under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. See Note 8 for additional information. (2) Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement service company, acquired in March 2018. (3) Excludes net losses on investments and other financial instruments of $42.5 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2018 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 3,245 Inter-segment expenses included in Mortgage Insurance segment 3,245 — (5) Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. December 31, 2017 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) (2) $ 818,417 $ — $ 818,417 (Increase) decrease in unearned premiums (2) 114,356 — 114,356 Net premiums earned—insurance 932,773 — 932,773 Services revenue — 161,833 161,833 Net investment income 127,248 — 127,248 Other income 2,886 — 2,886 Total (3) (4) 1,062,907 161,833 1,224,740 Provision for losses 136,183 — 136,183 Policy acquisition costs 24,277 — 24,277 Cost of services — 105,812 105,812 Other operating expenses before corporate allocations 150,975 50,969 201,944 Restructuring and other exit costs (5) — 6,828 6,828 Total (4) 311,435 163,609 475,044 Adjusted pretax operating income (loss) before corporate allocations 751,472 (1,776 ) 749,696 Allocation of corporate operating expenses 55,441 14,319 69,760 Allocation of interest expense 45,016 17,745 62,761 Adjusted pretax operating income (loss) $ 651,015 $ (33,840 ) $ 617,175 Total assets $ 5,733,918 $ 166,963 (6) $ 5,900,881 ______________________ (1) Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. (3) Excludes net gains on investments and other financial instruments of $3.6 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 6,730 Inter-segment expenses included in Mortgage Insurance segment 6,730 — (5) Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. (6) The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other acquired intangible assets. See Note 7 for further details. December 31, 2016 Mortgage Insurance Services Total (In thousands) Net premiums written—insurance (1) $ 733,834 $ — $ 733,834 (Increase) decrease in unearned premiums 187,935 — 187,935 Net premiums earned—insurance 921,769 — 921,769 Services revenue — 177,249 177,249 Net investment income 113,466 — 113,466 Other income 3,572 — 3,572 Total (2) (3) 1,038,807 177,249 1,216,056 Provision for losses 204,175 — 204,175 Policy acquisition costs 23,480 — 23,480 Cost of services — 115,369 115,369 Other operating expenses before corporate allocations 140,624 55,815 196,439 Total (3) 368,279 171,184 539,463 Adjusted pretax operating income (loss) before corporate allocations 670,528 6,065 676,593 Allocation of corporate operating expenses 45,178 8,533 53,711 Allocation of interest expense 63,439 17,693 81,132 Adjusted pretax operating income (loss) $ 561,911 $ (20,161 ) $ 541,750 Total assets 5,506,338 356,836 5,863,174 ______________________ (1) Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $30.8 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2016 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 8,355 Inter-segment expenses included in Mortgage Insurance segment 8,355 — |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income is as follows: December 31, (In thousands) 2018 2017 2016 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 772,614 $ 651,015 $ 561,911 Services (1) (27,119 ) (33,840 ) (20,161 ) Total adjusted pretax operating income $ 745,495 $ 617,175 $ 541,750 Net gains (losses) on investments and other financial instruments (42,476 ) 3,621 30,751 Loss on induced conversion and debt extinguishment — (51,469 ) (75,075 ) Acquisition-related expenses (2) (881 ) (105 ) (519 ) Impairment of goodwill — (184,374 ) — Amortization and impairment of other acquired intangible assets (12,429 ) (27,671 ) (13,221 ) Impairment of other long-lived assets (3) (5,523 ) (10,440 ) — Consolidated pretax income $ 684,186 $ 346,737 $ 483,686 ______________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. (3) For the year ended December 31, 2018, this item comprises other operating expenses of $1.5 million and restructuring and other exit costs of $4.0 million , each as included in the consolidated statement of operations. For the year ended December 31, 2017, the full amount is included in restructuring and other exit costs in the consolidated statement of operations. See Note 1 |
Note 5 - Fair Value of Financ_2
Note 5 - Fair Value of Financial Instruments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets & Liabilities Measured at Fair Value by Hierarchy Level | The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2018 : December 31, 2018 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 199,302 $ 28,412 $ 227,714 State and municipal obligations — 324,742 324,742 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 2,564,068 2,564,068 RMBS — 353,224 353,224 CMBS — 591,393 591,393 Other ABS — 705,468 705,468 Equity securities 136,662 3,958 140,620 Other investments (1) — 175,113 175,113 Total Investments at Fair Value (2) 431,096 4,746,378 5,177,474 (3) Total Assets at Fair Value (4) $ 431,096 $ 4,746,378 $ 5,177,474 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.4 million that is primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (3) Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our consolidated balance sheet. See Note 8 for more information. The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2017 : December 31, 2017 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 124,969 $ 8,023 $ 132,992 State and municipal obligations — 386,111 386,111 Money market instruments 213,357 — 213,357 Corporate bonds and notes — 2,304,017 2,304,017 RMBS — 216,749 216,749 CMBS — 503,955 503,955 Other ABS — 676,158 676,158 Foreign government and agency securities — 36,448 36,448 Equity securities 175,205 860 176,065 Other investments (1) — 25,720 25,720 Total Investments at Fair Value (2) 513,531 4,158,041 4,671,572 (3 ) Total Assets at Fair Value $ 513,531 $ 4,158,041 $ 4,671,572 (3 ) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $0.3 million , primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements of $19.4 million reinvested in money market instruments. (3) Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated: December 31, 2018 December 31, 2017 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets (1) $ — $ — $ 334 $ 3,226 Liabilities: Senior notes 1,030,348 1,007,687 1,027,074 1,093,934 ______________________ (1) |
Note 6 - Investments Level 3 (T
Note 6 - Investments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Available-for-sale Securities [Table Text Block] | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2018 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 85,532 $ 84,070 (1) $ 46 $ 1,508 State and municipal obligations 138,022 138,313 2,191 1,900 Corporate bonds and notes 2,288,720 2,229,885 5,053 63,888 RMBS 334,843 332,142 (2) 1,785 4,486 CMBS 546,729 539,915 544 7,358 Other ABS 712,748 704,662 814 8,900 Total securities available for sale 4,106,594 4,028,987 (3) 10,433 88,040 ______________________ (1) Includes securities with a fair value of $10.7 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $77.7 million serving as collateral for FHLB advances. (3) Includes $7.4 million of fixed maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. December 31, 2017 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 69,667 $ 69,396 $ 96 $ 367 State and municipal obligations 156,587 161,722 5,834 699 Corporate bonds and notes 1,869,318 1,894,886 33,620 8,052 RMBS 189,455 187,229 636 2,862 CMBS 451,595 453,394 3,409 1,610 Other ABS 672,715 674,548 2,655 822 Foreign government and agency securities 31,417 32,207 823 33 Total fixed-maturities available for sale 3,440,754 3,473,382 47,073 14,445 Equity securities available for sale (2) 176,349 176,065 1,705 1,989 Total debt and equity securities $ 3,617,103 $ 3,649,447 (1) $ 48,778 $ 16,434 ______________________ (1) Includes $14.7 million of fixed maturity securities and $13.2 million of equity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. (2) |
Schedule of Securities Financing Transactions [Table Text Block] | Key balances related to our securities lending agreements at December 31, 2018 , consisted of the following: (In thousands) December 31, 2018 December 31, 2017 Loaned securities: (1) U.S. government and agency securities $ 9,987 $ — Corporate bonds and notes 7,818 13,862 Foreign government and agency securities — 867 Equity securities 10,055 13,235 Total loaned securities, at fair value $ 27,860 $ 27,964 Total loaned securities, at amortized cost $ 28,992 27,846 Securities collateral on deposit from Borrowers (2) 16,815 9,342 Reinvested cash collateral, at estimated fair value (3) 11,699 19,357 ______________________ (1) Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. (2) Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. (3) |
Change in Unrealized Gain (Loss) Recorded in AOCI [Table Text Block] | The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, (In thousands) 2018 2017 2016 Fixed-maturities: Unrealized holding gains (losses) arising during the period, net of tax $ (97,356 ) $ 32,147 $ 8,822 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (10,270 ) (2,556 ) 2,361 Net unrealized gains (losses) on investments, net of tax $ (87,086 ) $ 34,703 $ 6,461 Equities (1) : Unrealized holding gains (losses) arising during the period, net of tax $ — $ (244 ) $ (40 ) Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax — (86 ) (110 ) Net unrealized gains (losses) on investments, net of tax $ — $ (158 ) $ 70 ______________________ (1) |
Schedule Of Unrealized Losses [Table Text Block] | the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of December 31, 2018 , are loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. December 31, 2018 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 2 $ 27,415 $ 796 8 $ 23,476 $ 712 10 $ 50,891 $ 1,508 State and municipal obligations 12 41,263 955 16 39,982 945 28 81,245 1,900 Corporate bonds and notes 330 1,208,430 36,284 126 601,533 27,604 456 1,809,963 63,888 RMBS 15 92,315 782 28 77,395 3,704 43 169,710 4,486 CMBS 62 328,696 3,973 33 125,728 3,385 95 454,424 7,358 Other ABS 129 503,109 7,917 26 89,628 983 155 592,737 8,900 Total 550 $ 2,201,228 $ 50,707 237 $ 957,742 $ 37,333 787 $ 3,158,970 $ 88,040 December 31, 2017 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 6 $ 23,309 $ 129 3 $ 9,799 $ 238 9 $ 33,108 $ 367 State and municipal obligations 21 65,898 699 — — — 21 65,898 699 Corporate bonds and notes 152 672,318 4,601 32 139,105 3,451 184 811,423 8,052 RMBS 8 19,943 204 26 101,812 2,658 34 121,755 2,862 CMBS 35 139,353 1,395 4 3,518 215 39 142,871 1,610 Other ABS 92 260,864 777 7 8,297 45 99 269,161 822 Foreign government and agency securities 5 7,397 33 — — — 5 7,397 33 Equity securities 13 149,785 1,989 — — — 13 149,785 1,989 Total 332 $ 1,338,867 $ 9,827 72 $ 262,531 $ 6,607 404 $ 1,601,398 $ 16,434 |
Trading Securities [Table Text Block] | The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: December 31, (In thousands) 2018 2017 Trading securities: State and municipal obligations $ 168,359 $ 214,841 Corporate bonds and notes 228,151 307,271 RMBS 21,083 29,520 CMBS 51,478 50,561 Foreign government and agency securities — 4,241 Total $ 469,071 $ 606,434 (1) ______________________ (1) |
Investment Income [Table Text Block] | Net investment income consisted of: Year Ended December 31, (In thousands) 2018 2017 2016 Investment income: Fixed-maturities $ 141,552 $ 122,890 $ 115,880 Equity securities 7,157 4,318 86 Short-term investments 10,270 5,453 3,086 Other 976 987 1,161 Gross investment income 159,955 133,648 120,213 Investment expenses (7,480 ) (6,400 ) (6,747 ) Net investment income $ 152,475 $ 127,248 $ 113,466 |
Gain (Loss) on Securities [Table Text Block] | Net realized and unrealized gains (losses), including impairment losses, on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2018 2017 2016 Net realized gains (losses) on investments: Fixed-maturities available for sale (1) $ (11,256 ) $ (3,014 ) $ 4,160 Trading securities (1,840 ) (5,995 ) (237 ) Equity securities 532 368 (170 ) Short-term investments (10 ) (16 ) (135 ) Other invested assets 414 22 631 Other gains (losses) 66 32 64 Net realized gains (losses) on investments (12,094 ) (8,603 ) 4,313 Other-than-temporary impairment losses (1,744 ) (1,420 ) (526 ) Net unrealized gains (losses) on investment securities (2) (27,287 ) 13,230 27,217 Total net gains (losses) on investments (41,125 ) 3,207 31,004 Net gains (losses) on other financial instruments (1,351 ) 414 (253 ) Net gains (losses) on investments and other financial instruments $ (42,476 ) $ 3,621 $ 30,751 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31, (In thousands) 2018 2017 2016 Gross investment gains from sales and redemptions $ 1,986 $ 6,052 $ 10,326 Gross investment losses from sales and redemptions (13,242 ) (9,066 ) (6,166 ) (2) |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of fixed-maturity investments available for sale as follows: December 31, 2018 (In thousands) Amortized Fair Due in one year or less $ 56,350 $ 56,067 Due after one year through five years (1) 933,807 920,173 Due after five years through ten years (1) 1,142,145 1,107,129 Due after ten years (1) 379,972 368,899 RMBS (2) 334,843 332,142 CMBS (2) 546,729 539,915 Other ABS (2) 712,748 704,662 Total (3) $ 4,106,594 $ 4,028,987 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. (3) Available for sale includes securities loaned under securities lending agreements with a fair value of $7.4 million |
Note 7 - Goodwill and Other A_2
Note 7 - Goodwill and Other Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table shows the changes in the carrying amount of goodwill as of and for the years ended December 31, 2018 and 2017 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2016 $ 197,265 $ (2,095 ) $ 195,170 Goodwill acquired 126 — 126 Impairment losses — (184,374 ) (184,374 ) Balance at December 31, 2017 197,391 (186,469 ) 10,922 Goodwill acquired 3,170 — 3,170 Balance at December 31, 2018 $ 200,561 $ (186,469 ) $ 14,092 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The following is a summary of the gross and net carrying amounts and accumulated amortization of our other acquired intangible assets as of the periods indicated: December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) (1) $ 35,773 Technology 17,362 (13,141 ) (2) 4,221 Trade name and trademarks 8,340 (3,864 ) 4,476 Non-competition agreements 185 (177 ) 8 Licenses 463 (35 ) 428 Total $ 110,350 $ (65,444 ) $ 44,906 December 31, 2017 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 82,530 $ (41,596 ) (1) $ 40,934 Technology 15,250 (8,922 ) (2) 6,328 Trade name and trademarks 8,340 (3,003 ) 5,337 Client backlog 6,680 (6,006 ) 674 Non-competition agreements 185 (168 ) 17 Total $ 112,985 $ (59,695 ) $ 53,290 ______________________ (1) Includes an impairment charge of $14.9 million in the quarter ended June 30, 2017. (2) Includes an impairment charge of $0.9 million |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For the years ended December 31, 2018 , 2017 and 2016 , amortization expense was $12.4 million , $11.8 million and $13.2 million , respectively. The estimated aggregate expense for 2019 and thereafter is as follows: (In thousands) 2019 $ 8,688 2020 7,321 2021 5,907 2022 5,375 2023 4,923 Thereafter 12,692 Total $ 44,906 |
Schedule of Estimated Useful Lives, Finite-Lived Intangible Assets [Table Text Block] | For financial reporting purposes, other acquired intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: Estimated Useful Life Client relationships 5 years - 15 years Technology 3 years - 8 years Trade name and trademarks 6 years - 10 years Licenses 10 years Non-competition agreements 2 years - 3 years |
Note 8 - Reinsurance (Tables)
Note 8 - Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Schedule of VIE Assets [Table Text Block] | The following table presents Eagle Re’s total assets as well as Radian Guaranty’s maximum exposure to loss associated with Eagle Re, each as of December 31, 2018 . Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (3) Total Eagle Re $ 434,034 $ 1,114 (2) $ 434,034 435,148 Total $ 434,034 $ 1,114 $ 434,034 435,148 ______________________ (1) Eagle Re’s assets are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Eagle Re’s liabilities consist of its mortgage insurance-linked notes of $434.0 million , as described above. (2) Represents the fair value of the related embedded derivative, included in other assets in our consolidated balance sheets. (3) Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million |
Effects of Reinsurance [Table Text Block] | The effect of reinsurance on our mortgage insurance net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Net premiums written—insurance: Direct $ 1,082,285 $ 1,032,735 $ 1,000,111 Assumed 6,901 (1) 25 29 Ceded (2) (98,165 ) (214,343 ) (266,306 ) Net premiums written—insurance $ 991,021 $ 818,417 $ 733,834 Net premiums earned—insurance: Direct $ 1,066,864 $ 990,016 $ 999,093 Assumed 6,904 (1) 28 35 Ceded (2) (67,047 ) (57,271 ) (77,359 ) Net premiums earned—insurance $ 1,006,721 $ 932,773 $ 921,769 ______________________ (1) Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. (2) |
Ceded Credit Risk [Table Text Block] | The following tables show the amounts related to the Single Premium QSR Program and the QSR Program for the periods indicated: Single Premium QSR Program QSR Program Year Ended December 31, Year Ended December 31, (In thousands) 2018 2017 2016 2018 2017 2016 Ceded premiums written (1) $ 74,876 $ 193,517 $ 233,206 $ 13,486 $ 19,356 $ 28,097 Ceded premiums earned (1) 44,286 27,284 29,808 19,660 28,503 42,515 Ceding commissions written 29,745 55,333 66,153 3,890 5,536 8,019 Ceding commissions earned (2) 22,097 13,774 15,303 11,349 13,122 16,573 Ceded losses 4,574 2,490 2,262 512 771 1,858 ______________________ (1) Net of profit commission. (2) |
Note 9 - Other Assets (Tables)
Note 9 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | The following table shows the components of other assets for the periods indicated: December 31, (In thousands) 2018 2017 Deposit with the IRS (1) $ — $ 88,557 Company-owned life insurance 83,377 85,862 Internal-use software (2) 51,367 48,751 Current federal income tax receivable (1) 44,506 — Property and equipment (3) 37,090 38,291 Accrued investment income 34,878 31,389 Loaned securities (Note 6) 27,860 27,964 Unbilled receivables 19,917 22,257 Deferred policy acquisition costs 17,311 16,987 Reinsurance recoverables 14,402 8,492 Other 36,992 39,299 Total other assets $ 367,700 $ 407,849 ______________________ (1) In 2018, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. As such, the remaining balances of the deposits with the IRS as of December 31, 2018 are included in current federal income tax receivable. In January 2019, we received $33 million of the $58 million refund from the IRS and expect to receive the remaining $25 million in the coming months. See Note 10 for additional information regarding the IRS Matter. (2) Internal-use software, at cost, has been reduced by accumulated amortization of $60.3 million and $48.4 million at December 31, 2018 and 2017 , respectively, as well as $5.1 million of impairment charges in 2018. Amortization expense was $11.4 million , $10.7 million and $6.0 million for the years ended December 31, 2018 , 2017 and 2016 respectively. (3) Property and equipment at cost, less accumulated depreciation of $62.9 million and $57.6 million at December 31, 2018 and 2017 , respectively. Depreciation expense was $8.0 million , $6.9 million and $5.6 million for the years ended December 31, 2018 , 2017 and 2016 |
Note 10 - Income Taxes Level 3
Note 10 - Income Taxes Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision [Table Text Block] | The components of our consolidated income tax provision from continuing operations are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current provision (benefit) $ (42,398 ) $ 59,122 $ 4,546 Deferred provision 120,573 166,527 170,887 Total income tax provision $ 78,175 $ 225,649 $ 175,433 |
Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block] | The reconciliation of taxes computed at the statutory tax rate of 21% in 2018 and 35% in 2017 and 2016 to the provision for income taxes is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Provision for income taxes computed at the statutory tax rate $ 143,679 $ 121,358 $ 169,290 Change in tax resulting from: Repurchase premium on convertible notes — (96 ) 9,988 State tax provision (benefit), net of federal impact 5,570 (15,641 ) (8,974 ) Valuation allowance (1,856 ) 18,197 10,663 Remeasurement of net deferred tax assets due to the TCJA — 102,617 — Impact related to settlement of IRS Matter (73,585 ) — — Other, net 4,367 (786 ) (5,534 ) Provision for income taxes $ 78,175 $ 225,649 $ 175,433 |
Schedule of Components of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: December 31, (In thousands) 2018 2017 Deferred tax assets: Accrued expenses $ 17,487 $ 30,267 Unearned premiums 34,686 35,035 Differences in fair value of financial instruments 1,115 — Net unrealized loss on investments 16,297 — State income taxes 67,069 68,577 Partnership investments — 47,991 Loss reserves 1,044 1,397 Alternative minimum tax credit carryforward — 57,086 Goodwill and intangibles 35,068 36,947 Deferred policy acquisition and ceding commission costs 15,288 14,888 Share-based compensation 10,776 10,190 Other 13,091 16,421 Total deferred tax assets 211,921 318,799 Deferred tax liabilities: Partnership investments 639 — Differences in fair value of financial instruments — 3,833 Net unrealized gain on investments — 6,792 Depreciation 12,201 11,138 Other 2,942 2,446 Total deferred tax liabilities 15,782 24,209 Less: Valuation allowance 64,496 65,023 Net deferred tax asset $ 131,643 $ 229,567 |
Reconciliation of Unrecognized Tax Benefits [Table Text Block] | A reconciliation of the beginning and ending unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2018 2017 Balance at beginning of period $ 123,951 $ 123,028 Tax positions related to the current year: Increases 5,058 2,343 Tax positions related to prior years: Increases 26,465 24,122 Decreases (43,146 ) (1,437 ) Settlements with taxing authorities (52,353 ) — Lapses of applicable statute of limitation (26,423 ) (24,105 ) Balance at end of period $ 33,552 $ 123,951 |
Note 11 - Losses and LAE Leve_2
Note 11 - Losses and LAE Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claim Adjustment Expenses, by Segment [Table Text Block] | Our reserve for losses and LAE, at the end of each period indicated, consisted of: Year Ended December 31, (In thousands) 2018 2017 Mortgage Insurance loss reserves $ 397,891 $ 507,588 Services loss reserves (1) 3,470 — Total reserve for losses and LAE $ 401,361 $ 507,588 ______________________ (1) A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018. See Note 8 |
Schedule of MI Loss Reserves and LAE by Category [Table Text Block] | The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: Year Ended December 31, (In thousands) 2018 2017 Reserves for losses by category: Prime $ 231,169 $ 285,022 Alt-A and A minus and below 119,527 170,873 IBNR and other 13,864 16,021 LAE 10,271 13,349 Reinsurance recoverable (1) 10,992 8,315 Total primary reserves 385,823 493,580 Total pool reserves (2) 11,640 13,463 Total First-lien reserves 397,463 507,043 Other (3) 428 545 Total reserve for losses $ 397,891 $ 507,588 ______________________ (1) Represents ceded losses on reinsurance transactions, including the QSR Program and the Single Premium QSR Program. These amounts are included in the reinsurance recoverables reported in other assets in our consolidated balance sheets. (2) Includes reinsurance recoverable of $17 thousand and $35 thousand as of December 31, 2018 and December 31, 2017 , respectively. (3) |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan PDR: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at January 1, $ 507,588 $ 760,269 $ 976,399 Less: Reinsurance recoverables (1) 8,350 6,851 8,286 Balance at January 1, net of reinsurance recoverables 499,238 753,418 968,113 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 135,291 185,486 206,383 Prior years (31,699 ) (49,286 ) (3,516 ) Total incurred 103,592 136,200 202,867 Deduct: Paid claims and LAE related to: Current year (2) 5,856 25,011 11,410 Prior years 210,092 365,369 406,152 Total paid 215,948 390,380 (3) 417,562 Balance at end of period, net of reinsurance recoverables 386,882 499,238 753,418 Add: reinsurance recoverables (1) 11,009 8,350 6,851 Balance at December 31, $ 397,891 $ 507,588 $ 760,269 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions, the QSR Program and the Single Premium QSR Program. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. (3) Includes the payment of $54.8 million |
Short-duration Insurance Contracts, Claims Development [Table Text Block] | The information about net incurred losses and paid claims development for the years ended prior to 2018 is presented as supplementary information. Incurred Losses, Net of Reinsurance Year Ended December 31, As of December 31, 2018 ($ in thousands) Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) Unaudited Default Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 1,671,239 $ 1,894,783 $ 1,930,263 $ 1,939,479 $ 1,974,568 $ 1,991,796 $ 2,016,412 $ 2,018,907 $ 2,022,629 $ 2,025,828 $ 1,572 213.836 2010 1,102,856 1,215,136 1,192,482 1,195,056 1,207,774 1,220,289 1,218,264 1,219,469 1,221,938 1,019 146.324 2011 1,058,625 1,152,016 1,052,277 1,050,555 1,062,579 1,061,161 1,059,116 1,060,376 970 118.972 2012 803,831 763,969 711,213 720,502 715,646 714,783 713,750 586 89.845 2013 505,732 405,334 401,444 404,333 402,259 400,243 344 71.749 2014 337,784 247,074 265,891 264,620 260,098 241 58.215 2015 222,555 198,186 178,042 183,952 292 49.825 2016 201,016 165,440 149,753 428 46.264 2017 180,851 151,802 1,212 47.283 2018 131,513 1,876 39.598 Total $ 6,299,253 ______________________ (1) Represents reserves as of December 31, 2018 related to IBNR liabilities. (2) Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2018 and December 31, 2017 are 3,776 and 8,862 notices, respectively, of new primary defaults related to the FEMA Designated Areas associated with Hurricanes Harvey and Irma. Cumulative Paid Claims, Net of Reinsurance Year Ended December 31, (In thousands) Unaudited Default Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 136,413 $ 619,496 $ 1,236,210 $ 1,471,264 $ 1,711,019 $ 1,807,031 $ 1,921,134 $ 1,958,660 $ 1,986,076 $ 2,004,219 2010 11,810 394,278 700,316 956,598 1,055,935 1,145,497 1,178,546 1,198,031 1,210,281 2011 40,392 323,216 756,820 892,959 982,830 1,016,855 1,038,582 1,048,966 2012 19,200 295,332 528,744 631,982 672,271 692,291 702,136 2013 34,504 191,040 307,361 357,087 379,036 388,688 2014 13,108 115,852 200,422 233,607 246,611 2015 10,479 84,271 142,421 163,916 2016 11,061 76,616 119,357 2017 24,653 66,585 2018 5,584 Total $ 5,956,343 All outstanding liabilities before 2009, net of reinsurance 33,479 Liabilities for claims, net of reinsurance (1) $ 376,389 ______________________ (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 6,299,253 Add: All outstanding liabilities before 2009, net of reinsurance 33,479 Less: Cumulative paid claims, net of reinsurance 5,956,343 Liabilities for claims, net of reinsurance $ 376,389 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the Mortgage Insurance reserve for losses and LAE at December 31, 2018 : (In thousands) December 31, 2018 Net outstanding liabilities - Mortgage Insurance: Reserve for losses and LAE, net of reinsurance $ 376,389 Reinsurance recoverables on unpaid claims 11,009 Unallocated LAE 10,493 Total gross reserve for losses and LAE (1) $ 397,891 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration [Table Text Block] | The following is supplementary information about average historical claims duration as of December 31, 2018 , representing the average distribution of when claims are paid relative to the year of default: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage Insurance 6.1% 34.5% 31.4% 13.8% 7.4% 4.1% 2.9% 1.5% 1.2% 0.9% |
Note 12 - Senior Notes Level 3
Note 12 - Senior Notes Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Senior Notes [Table Text Block] | The carrying value of our senior notes at December 31, 2018 and 2017 was as follows: December 31, ($ in thousands) 2018 2017 5.500% Senior Notes due 2019 $ 158,324 $ 157,636 5.250% Senior Notes due 2020 232,729 231,834 7.000% Senior Notes due 2021 195,867 195,146 4.500% Senior Notes due 2024 443,428 442,458 Total Senior Notes $ 1,030,348 $ 1,027,074 |
Note 13 - Other Liabilities (Ta
Note 13 - Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities [Table Text Block] | The following table shows the components of other liabilities as of the dates indicated: Year Ended December 31, (In thousands) 2018 2017 Deferred ceding commission $ 91,400 $ 89,907 FHLB advances 82,532 — Accrued compensation 61,452 67,687 Amount payable on the return of cash collateral under securities lending agreements 11,699 19,357 Current federal income taxes — 96,740 Other 86,576 80,154 Total other liabilities $ 333,659 $ 353,845 |
Note 14 - Commitments and Con_3
Note 14 - Commitments and Contingencies Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The commitment for non-cancelable operating leases in future years is as follows: (In thousands) 2019 $ 11,310 2020 10,847 2021 10,165 2022 10,100 2023 10,251 Thereafter 56,317 Total $ 108,990 |
Note 16 - Share-Based and Oth_2
Note 16 - Share-Based and Other Compensation Programs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of outstanding awards and compensation expense recognized for each type of share-based award | The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: December 31, ($ in thousands) 2018 2017 2016 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs—Cash-Settled $ — $ — $ — $ 1 $ 18 $ (718 ) Equity: RSUs — Equity Settled 3,763,633 16,591 3,434,976 12,206 3,208,454 13,285 Non-Qualified Stock Options 1,312,791 603 1,692,743 851 2,839,738 3,286 Phantom Stock 234,427 2 234,302 2 234,174 2 Employee Stock Purchase Plan 453 432 449 Equity 17,649 13,491 17,022 Total all share-based plans $ 17,649 $ 13,492 $ 16,304 ______________________ (1) |
Schedule of additional information regarding all share-based awards | The following table reflects additional information regarding all share-based awards for the years indicated: Year Ended December 31, (In thousands) 2018 2017 2016 Total compensation cost recognized $ 17,649 $ 13,492 $ 16,304 Less: Costs deferred as acquisition costs 324 269 206 Stock-based compensation expense $ 17,325 $ 13,223 $ 16,098 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Information with regard to RSUs to be settled in stock for the periods indicated is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested, December 31, 2017 (1) 3,434,976 $ 12.90 Granted 1,058,045 $ 15.58 Vested (258,845 ) $ 12.61 Forfeited (470,543 ) $ 18.07 Unvested, December 31, 2018 (1) 3,763,633 $ 13.04 |
Schedule of valuation assumptions of performance based RSU | he following assumptions: 2017 2016 Expected life 3 years 3 years Risk-free interest rate (1) 1.6 % 0.9 % Volatility of Radian’s stock (2) 28.0 % 29.7 % Average volatility of peer companies (3) 30.6 % 38.2 % Dividend yield 0.06 % 0.08 % Discount rate (4) 10.7 % 10.7 % ______________________ (1) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (2) Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. (3) Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. (4) |
Share-based Compensation Arrangement by Share-based Payment Award, Time-Vested Units, Grants in Period [Table Text Block] | Information with regard to grants of time-vested RSUs to be settled in common stock is as follows for the periods indicated: Year Ended December 31, 2018 2017 (1) 2016 (2) Time-vested RSUs granted to certain executives and non-executive officers 385,962 (1) 372,489 180,380 Time-vested RSUs granted to non-employee directors 76,763 (3) 68,337 356,040 (4) Total time-vested RSUs granted (5) 462,725 440,826 536,420 ______________________ (1) The time-vested RSU awards granted in 2018 and 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years . (2) The time-vested RSU awards granted in 2016 generally are subject to three-year cliff vesting. (3) The time-vested RSU awards granted in 2018 to non-employee directors generally are subject to one-year cliff vesting. (4) Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us). (5) |
Schedule of information with regard to stock options | Information with regard to stock options for the periods indicated is as follows: ($ in thousands, except per-share amounts) Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding, December 31, 2017 1,692,743 $ 8.16 Granted — $ — Exercised (375,573 ) $ 3.79 Forfeited (4,379 ) $ 14.38 Expired — $ — Outstanding, December 31, 2018 1,312,791 $ 9.39 4.9 $ 9,500 Exercisable, December 31, 2018 966,478 $ 7.91 4.0 $ 8,361 Available for grant, December 31, 2018 7,906,190 ______________________ (1) Based on the market price of $16.36 |
Schedule of fully vested share options | The following table summarizes additional information concerning stock option activity for the periods indicated: Years Ended December 31, ($ in thousands, except per-share amounts) 2018 2017 2016 Granted (number of shares) — — 342,090 Weighted-average grant date fair value per share (1) $ — $ — $ 9.72 Aggregate intrinsic value of options exercised $ 6,274 $ 14,389 $ 1,519 Tax benefit of options exercised $ 1,318 $ 5,036 $ 532 Cash received from options exercised $ 1,425 $ 7,131 $ 717 ______________________ (1) We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 Derived service period (years) 3.02 - 4.00 Risk-free interest rate (a) 1.72 % Volatility (b) 94.20 % Dividend yield 0.08 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) |
Schedule of valuation assumptions of stock options granted | We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 Derived service period (years) 3.02 - 4.00 Risk-free interest rate (a) 1.72 % Volatility (b) 94.20 % Dividend yield 0.08 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) |
Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options at December 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 565,317 3.4 $ 2.45 565,317 $ 2.45 $5.76 - $7.06 — 0.0 $ — — $ — $10.42 - $15.44 578,612 6.0 $ 13.53 306,611 $ 14.74 $18.42 168,862 6.3 $ 18.42 20,000 $ 18.42 1,312,791 4.9 $ 9.39 891,928 $ 7.03 |
Schedule of valuation assumptions of ESPP | The following assumptions were used in our calculation of Employee Stock Purchase Plan compensation expense during 2018 : January 1, 2018 July 1, 2018 Expected life 6 months 6 months Risk-free interest rate 1.76 % 2.43 % Volatility 31.49 % 32.80 % Dividend yield 0.05 % 0.06 % |
Note 18 - Accumulated Other C_2
Note 18 - Accumulated Other Comprehensive Income (Loss) Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Year Ended December 31, 2018 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting the accounting standard update for financial instruments 284 60 224 Cumulative effect of adopting the accounting standard update for the reclassification of certain tax effects — (2,724 ) 2,724 Balance adjusted for cumulative effect of adopting accounting standard updates 32,953 6,920 26,033 Other comprehensive income (loss) (“OCI”): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (123,235 ) (25,879 ) (97,356 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (13,000 ) (2,730 ) (10,270 ) Net unrealized gains (losses) on investments (110,235 ) (23,149 ) (87,086 ) Net foreign currency translation adjustments 5 1 4 Net actuarial gains (losses) 163 34 129 OCI (110,067 ) (23,114 ) (86,953 ) Balance at end of period $ (77,114 ) $ (16,194 ) $ (60,920 ) Year Ended December 31, 2017 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (19,063 ) $ (6,668 ) $ (12,395 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 46,235 14,332 31,903 Less: Reclassification adjustment for net gains (losses) included in net income (1) (4,065 ) (1,423 ) (2,642 ) Net unrealized gains (losses) on investments 50,300 15,755 34,545 Foreign currency translation adjustments: Unrealized foreign currency translation adjustments 225 75 150 Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income (2) (1,109 ) (388 ) (721 ) Net foreign currency translation adjustments 1,334 463 871 Net actuarial gains (losses) 98 34 64 OCI 51,732 16,252 35,480 Balance at end of period $ 32,669 $ 9,584 $ 23,085 Year Ended December 31, 2016 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (28,425 ) $ (9,948 ) $ (18,477 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 13,510 4,728 8,782 Less: Reclassification adjustment for net gains (losses) included in net income (1) 3,463 1,212 2,251 Net unrealized gains (losses) on investments 10,047 3,516 6,531 Net foreign currency translation adjustments (724 ) (250 ) (474 ) Net actuarial gains (losses) 39 14 25 OCI 9,362 3,280 6,082 Balance at end of period $ (19,063 ) $ (6,668 ) $ (12,395 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. (2) |
Note 19 - Statutory Informati_2
Note 19 - Statutory Information Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |
Risk To Capital Calculation [Table Text Block] | Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. December 31, ($ in millions) 2018 2017 RIF, net (1) $ 40,711.3 $ 36,793.5 Common stock and paid-in capital $ 1,416.0 $ 1,866.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (701.9 ) (765.0 ) Statutory policyholders’ surplus 814.1 1,201.0 Contingency reserve 2,109.9 1,667.0 Statutory capital $ 2,924.0 $ 2,868.0 Risk-to-capital 13.9:1 12.8:1 ______________________ (1) |
Radian Guaranty | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Guaranty’s statutory net income, statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income $ 501.9 $ 445.1 $ 480.8 Statutory policyholders’ surplus 814.1 1,201.0 1,349.7 Contingency reserve 2,109.9 1,667.0 1,260.6 |
Radian Reinsurance | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income $ 86.1 $ 64.3 $ 60.3 Statutory policyholders’ surplus 356.2 328.9 147.6 Contingency reserve 293.5 234.0 180.3 |
Other MI Companies | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these five subsidiaries as of and for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, (In millions) 2018 2017 2016 Statutory net income (loss) $ (2.8 ) $ 0.1 $ (6.1 ) Statutory policyholders’ surplus 58.0 58.6 57.1 Contingency reserve 1.7 1.7 1.5 |
Note 20 - Quarterly Financial_2
Note 20 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2018 Quarters (In thousands, except per-share amounts) First Second Third Fourth Year Net premiums earned—insurance $ 242,550 $ 251,344 $ 258,431 $ 261,682 $ 1,014,007 Services revenue 33,164 36,828 36,566 38,414 144,972 Net investment income 33,956 37,473 38,995 42,051 152,475 Net gains (losses) on investments and other financial instruments (18,887 ) (7,404 ) (4,480 ) (11,705 ) (42,476 ) Provision for losses 37,283 19,337 20,881 27,140 104,641 Policy acquisition costs 7,117 5,996 5,667 6,485 25,265 Cost of services 23,126 24,205 25,854 24,939 98,124 Other operating expenses 63,243 70,184 70,125 77,266 280,818 Restructuring and other exit costs 551 925 4,464 113 6,053 Amortization and impairment of other acquired intangible assets 2,748 2,748 3,472 3,461 12,429 Net income 114,486 208,949 142,797 139,779 606,011 Diluted net income per share (1) $ 0.52 $ 0.96 $ 0.66 $ 0.64 $ 2.77 Weighted-average shares outstanding-diluted 219,883 217,830 217,902 217,883 218,553 2017 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 221,800 $ 229,096 $ 236,702 $ 245,175 $ 932,773 Services revenue 38,027 37,802 39,571 39,703 155,103 Net investment income 31,032 30,071 32,540 33,605 127,248 Net gains (losses) on investments and other financial instruments (2,851 ) 5,331 2,480 (1,339 ) 3,621 Provision for losses 46,913 17,222 35,841 35,178 135,154 Policy acquisition costs 6,729 6,123 5,554 5,871 24,277 Cost of services 28,375 25,635 27,240 23,349 104,599 Other operating expenses 68,377 68,750 64,195 65,999 267,321 Restructuring and other exit costs — — 12,038 5,230 17,268 Loss on induced conversion and debt extinguishment 4,456 1,247 45,766 — 51,469 Impairment of goodwill — 184,374 — — 184,374 Amortization and impairment of other acquired intangible assets 3,296 18,856 2,890 2,629 27,671 Net income (loss) 76,472 (27,342 ) 65,142 6,816 (2) 121,088 Diluted net income (loss) per share (1) $ 0.34 $ (0.13 ) $ 0.30 $ 0.03 (2) $ 0.55 Weighted-average shares outstanding-diluted 221,497 215,152 219,391 220,250 220,406 ______________________ (1) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. (2) |
Schedule I Summary Of Investm_2
Schedule I Summary Of Investments Summary of Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Investments [Abstract] | |
Summary Investment Holdings [Table Text Block] | Radian Group Inc. and Its Consolidated Subsidiaries Schedule I Summary of Investments—Other Than Investments in Related Parties December 31, 2018 Type of Investment Amortized Cost Fair Value Amount Reflected on the Consolidated Balance Sheet (In thousands) Fixed-maturities available for sale: Bonds: U.S. government and agency securities $ 85,532 $ 84,070 $ 84,070 State and municipal obligations 138,022 138,313 138,313 Corporate bonds and notes 2,288,720 2,229,885 2,229,885 RMBS 334,843 332,142 332,142 CMBS 546,729 539,915 539,915 Other ABS 712,748 704,662 704,662 Total securities available for sale 4,106,594 4,028,987 4,028,987 Trading securities 468,696 469,071 469,071 Equity securities: Common stocks 150,344 140,620 140,620 Total equity securities 150,344 140,620 140,620 Short-term investments (1) 538,977 538,796 538,796 Other invested assets 308 3,415 3,415 Total investments other than investments in related parties $ 5,264,919 $ 5,180,889 (2) $ 5,180,889 (2) ______________________ (1) Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (2) Includes $7.4 million of fixed maturity securities available for sale, $10.1 million of trading securities and $10.4 million |
Schedule II Financial Informa_2
Schedule II Financial Information of Registrant Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Condensed Financial Information Statement of Condition of Parent Company [Table Text Block] | Condensed Balance Sheet Parent Company Only December 31, (In thousands, except per-share amounts) 2018 2017 Assets Investments Fixed-maturities available for sale—at fair value $ 321,401 $ 10,785 Trading securities—at fair value 56,011 — Equity securities—at fair value 29,375 — Short-term investments—at fair value 238,185 83,356 Total investments 644,972 94,141 Cash 32,352 13,173 Investment in subsidiaries, at equity in net assets (Note B) 3,927,268 3,764,865 Accounts and notes receivable (Note C) 101,072 103,561 Federal income taxes recoverable, net—current 49,381 35,741 Other assets (Note D) 58,993 166,051 Total assets $ 4,814,038 $ 4,177,532 Liabilities and Stockholders’ Equity Senior Notes (Note E) $ 1,030,348 $ 1,027,074 Federal income taxes—deferred 243,341 97,067 Other liabilities 51,634 53,353 Total liabilities 1,325,323 1,177,494 Common stockholders’ equity Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2018 and 2017; 231,132 and 233,417 shares issued at December 31, 2018 and 2017, respectively; 213,473 and 215,814 shares outstanding at December 31, 2018 and 2017, respectively 231 233 Treasury stock, at cost: 17,660 and 17,603 shares at December 31, 2018 and 2017, respectively (894,870 ) (893,888 ) Additional paid-in capital 2,724,733 2,754,275 Retained earnings 1,719,541 1,116,333 Accumulated other comprehensive income (loss) (60,920 ) 23,085 Total common stockholders’ equity 3,488,715 3,000,038 Total liabilities and stockholders’ equity $ 4,814,038 $ 4,177,532 |
Condensed Financial Information Statement of Income of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only Year Ended December 31, (In thousands) 2018 2017 2016 Revenues: Net investment income $ 21,294 $ 22,528 $ 20,834 Net gains (losses) on investments and other financial instruments (470 ) (328 ) (150 ) Other income — 80 49 Total revenues 20,824 22,280 20,733 Expenses: Loss on induced conversion and debt extinguishment — 51,469 75,075 Interest expense 17,805 18,033 29,002 Total expenses (Note F) 17,805 69,502 104,077 Pretax gain (loss) from continuing operations 3,019 (47,222 ) (83,344 ) Income tax benefit (3,319 ) (141,437 ) (8,676 ) Equity in net income of affiliates 599,673 26,873 382,921 Net income 606,011 121,088 308,253 Other comprehensive income (loss), net of tax (86,953 ) 35,480 6,082 Comprehensive income $ 519,058 $ 156,568 $ 314,335 |
Condensed Financial Information Statement of Cash Flows of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only Year Ended December 31, (In thousands) 2018 2017 2016 Net cash provided by (used in) operating activities 254,698 (23,654 ) 38,902 Cash flows from investing activities: Proceeds from sales of: Fixed-maturity investments available for sale 6,779 58,007 47,058 Trading securities — — 30,350 Equity securities — — 24,992 Proceeds from redemptions of: Fixed-maturity investments available for sale 12,391 60,414 49,578 Trading securities — — 10,000 Purchases of: Fixed-maturity investments available for sale (37,552 ) (134,456 ) (137,431 ) Sales, redemptions and (purchases) of : Short-term investments, net (131,164 ) 210,529 (40,288 ) Other assets, net (3,317 ) (1,107 ) 239 Capital distributions from subsidiaries — 924 15,000 Capital contributions to subsidiaries (30,338 ) (21,643 ) (1,500 ) Acquisition of subsidiaries — — (30,443 ) (Issuance) repayment of note receivable from affiliate (Note C) — (44 ) 201,631 Net cash provided by (used in) investing activities (183,201 ) 172,624 169,186 Cash flows from financing activities: Dividends paid (2,140 ) (2,154 ) (2,105 ) Issuance of senior notes, net — 442,163 343,417 Purchases and redemptions of senior notes — (593,527 ) (445,072 ) Proceeds from termination of capped calls — 4,208 — Issuance of common stock 1,385 7,132 717 Purchases of common shares (50,053 ) (6 ) (100,188 ) Credit facility commitment fees paid (1,510 ) (1,993 ) — Excess tax benefits from stock-based awards (Note A) — — 98 Net cash provided by (used in) financing activities (52,318 ) (144,177 ) (203,133 ) Increase (decrease) in cash and restricted cash 19,179 4,793 4,955 Cash and restricted cash, beginning of period 13,173 8,380 3,425 Cash and restricted cash, end of period $ 32,352 $ 13,173 $ 8,380 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2018 , the maturities of the principal amount of our senior notes in future years are as follows: (In thousands) 2019 $ 158,623 2020 234,126 2021 197,661 2024 450,000 Total $ 1,040,410 |
Components of Parent Company Expenses Allocated to Subsidiaries [Table Text Block] | The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated: Year Ended December 31, (in thousands) 2018 2017 2016 Allocated operating expenses $ 94,815 $ 72,764 $ 56,446 Allocated interest expenses 42,195 44,686 52,092 Total allocated expenses $ 137,010 $ 117,450 $ 108,538 |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Recent Developments General (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization of Business [Abstract] | |
Number of Reportable Segments | 2 |
Note 1 - Description of Busin_3
Note 1 - Description of Business and Recent Developments Mortgage Insurance (Details) - Mortgage Insurance Segment $ in Billions | Dec. 31, 2018USD ($) |
Business Overview [Abstract] | |
Private Mortgage Insurance Protects Lenders For Loans Made With Less Than This Maximum Down Payment Percentage | 20.00% |
Private Mortgage Insurance Protects Lenders For Refinancings Made to Home Buyers With Less Than This Maximum Equity-Ownership Percentage | 20.00% |
Risk In Force | $ 56.7 |
Note 1 - Description of Busin_4
Note 1 - Description of Business and Recent Developments Current Year Developments (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||
Nov. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Aug. 16, 2018 | Aug. 09, 2017 | ||
Period That Company Incurred Restructuring and Other Exit Costs Related to Services Segment | 2 years | ||||||||||||||||
Restructuring Charges | $ 2,500 | $ 17,300 | $ 19,800 | ||||||||||||||
Payments for Restructuring | 2,000 | 6,800 | |||||||||||||||
Restructuring and other exit costs | $ 113 | $ 4,464 | $ 925 | $ 551 | $ 5,230 | $ 12,038 | $ 0 | $ 0 | 6,053 | $ 17,268 | $ 0 | ||||||
Third Quarter 2017 Repurchase Program | |||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | ||||||||||||||||
Stock Repurchased During Period, Shares | 3 | ||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 16.56 | ||||||||||||||||
Third Quarter 2018 Repurchase Program | |||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | ||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 100,000 | 100,000 | 100,000 | ||||||||||||||
Asset Impairment Charges | |||||||||||||||||
Restructuring Charges | 10,800 | ||||||||||||||||
Restructuring and other exit costs | 4,000 | ||||||||||||||||
Employee Severance and Benefit Costs | |||||||||||||||||
Restructuring Charges | 7,400 | ||||||||||||||||
Facility and Lease Termination Costs | |||||||||||||||||
Restructuring Charges | 1,300 | ||||||||||||||||
Contract Termination and Other Restructuring Costs | |||||||||||||||||
Restructuring Charges | 300 | ||||||||||||||||
Impairments of Internal-Use Software | |||||||||||||||||
Restructuring and other exit costs | 3,600 | ||||||||||||||||
Internal Revenue Service (IRS) | REMIC Residual | |||||||||||||||||
Income Tax Expense (Benefit) Recorded as a Result of Finalized IRS Settlement | $ (73,600) | ||||||||||||||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | 31,000 | 31,000 | 31,000 | ||||||||||||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Refunded | 58,000 | 58,000 | 58,000 | ||||||||||||||
Mortgage Insurance Segment | |||||||||||||||||
Restructuring and other exit costs | [1] | 0 | |||||||||||||||
Risk In Force | $ 56,700,000 | $ 56,700,000 | $ 56,700,000 | ||||||||||||||
Mortgage Insurance Segment | Eagle Re | Radian Guaranty | |||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 434,000 | ||||||||||||||||
Risk In Force | 9,100,000 | ||||||||||||||||
Mortgage Insurance Segment | Separate Third-Party Reinsurer | Radian Guaranty | |||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 21,400 | ||||||||||||||||
[1] | Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. |
Note 2 - Significant Accounti_4
Note 2 - Significant Accounting Policies Accounting Policy (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($)contractgrouppaymentdays | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)contractgrouppaymentdays | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2015USD ($) | ||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cash and Restricted Cash | $ 107,002,000 | $ 96,244,000 | $ 107,002,000 | $ 96,244,000 | $ 61,814,000 | $ 59,898,000 | |||||||||
Cash | 95,400,000 | 80,500,000 | 95,400,000 | 80,500,000 | |||||||||||
Restricted Cash | 11,600,000 | 15,700,000 | 11,600,000 | 15,700,000 | |||||||||||
Accounts Receivable, Net | 78,652,000 | 72,558,000 | 78,652,000 | 72,558,000 | |||||||||||
Unbilled Contracts Receivable | 19,917,000 | 22,257,000 | 19,917,000 | 22,257,000 | |||||||||||
Services revenue | 38,414,000 | $ 36,566,000 | $ 36,828,000 | $ 33,164,000 | 39,703,000 | $ 39,571,000 | $ 37,802,000 | $ 38,027,000 | 144,972,000 | 155,103,000 | 168,894,000 | ||||
Cost of services | 24,939,000 | 25,854,000 | 24,205,000 | 23,126,000 | 23,349,000 | 27,240,000 | 25,635,000 | 28,375,000 | 98,124,000 | 104,599,000 | 114,174,000 | ||||
Other income | 4,028,000 | 2,886,000 | 3,572,000 | ||||||||||||
Other operating expenses | 77,266,000 | 70,125,000 | 70,184,000 | 63,243,000 | 65,999,000 | 64,195,000 | 68,750,000 | 68,377,000 | 280,818,000 | 267,321,000 | 244,896,000 | ||||
Operating Leases, Future Minimum Payments Due | $ 108,990,000 | $ 108,990,000 | |||||||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||||||
Number Of Payments Missed For Insured Loans | payment | 2 | 2 | |||||||||||||
Period That the Policyholder Has to Challenge a Notice of Rescission | days | 30 | 30 | |||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 | ||||||||||||||
Cash and Restricted Cash [Abstract] | |||||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 95,393,000 | 80,569,000 | 95,393,000 | 80,569,000 | |||||||||||
Restricted cash | $ 11,609,000 | 15,675,000 | $ 11,609,000 | 15,675,000 | |||||||||||
Investments [Abstract] | |||||||||||||||
Number of Investment Categories | group | 3 | 3 | |||||||||||||
Maximum Maturity Duration for Short Term Investment Grouping | 3 months | ||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Premiums Earned, Net | $ 261,682,000 | $ 258,431,000 | $ 251,344,000 | $ 242,550,000 | 245,175,000 | $ 236,702,000 | $ 229,096,000 | $ 221,800,000 | $ 1,014,007,000 | 932,773,000 | 921,769,000 | ||||
Minimum | |||||||||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||||||
Number Of Payments Missed For Insured Loans | payment | 2 | 2 | |||||||||||||
Maximum | |||||||||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||||||
Number Of Years That The Measurement Period Of The TCJA Is Not To Exceed | 1 year | ||||||||||||||
Computer Equipment | Minimum | |||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 3 years | ||||||||||||||
Computer Equipment | Maximum | |||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 5 years | ||||||||||||||
Furniture and Fixtures | Maximum | |||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 7 years | ||||||||||||||
Office Equipment | Maximum | |||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 5 years | ||||||||||||||
Mortgage and Real Estate Services Segment | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Accounts Receivable, Net | $ 15,461,000 | 17,391,000 | $ 15,461,000 | 17,391,000 | |||||||||||
Sales Revenue, Services and Other, Net | [1] | 149,451,000 | 161,833,000 | 177,249,000 | |||||||||||
Revenue from Related Parties | 3,245,000 | 6,730,000 | 8,355,000 | ||||||||||||
Net Premiums Earned and Net Investment Income | 7,700,000 | ||||||||||||||
Unbilled Contracts Receivable | 19,917,000 | 22,257,000 | 19,917,000 | 22,257,000 | |||||||||||
Services revenue | 148,217,000 | 161,833,000 | 177,249,000 | ||||||||||||
Cost of services | 98,692,000 | 105,812,000 | 115,369,000 | ||||||||||||
Other income | [2] | 1,234,000 | |||||||||||||
Other operating expenses | 53,250,000 | 50,969,000 | 55,815,000 | ||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Premiums Earned, Net | [2] | 7,286,000 | |||||||||||||
Deferred Revenue | $ 3,204,000 | 3,235,000 | 3,204,000 | 3,235,000 | |||||||||||
Provision for Doubtful Accounts | $ 0 | 0 | 0 | ||||||||||||
Number of Contracts | contract | 3 | 3 | |||||||||||||
Mortgage Insurance Segment | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Revenue from Related Parties | $ 0 | 0 | 0 | ||||||||||||
Services revenue | 0 | 0 | 0 | ||||||||||||
Cost of services | 0 | ||||||||||||||
Other income | 2,794,000 | 2,886,000 | 3,572,000 | ||||||||||||
Other operating expenses | $ 135,372,000 | 150,975,000 | 140,624,000 | ||||||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||||||
Period of Time Insureds Have After Foreclosure To Provide Documents To Perfect Claim | 1 year | ||||||||||||||
Number of Mortgage Insurance Product Categories | group | 2 | ||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Premiums Earned, Net | $ 1,006,721,000 | 932,773,000 | 921,769,000 | ||||||||||||
Mortgage Services | Mortgage and Real Estate Services Segment | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Sales Revenue, Services and Other, Net | 80,314,000 | 83,405,000 | 102,244,000 | ||||||||||||
Real Estate Services | Mortgage and Real Estate Services Segment | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Sales Revenue, Services and Other, Net | 58,874,000 | 55,095,000 | 58,056,000 | ||||||||||||
Title Services | Mortgage and Real Estate Services Segment | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Sales Revenue, Services and Other, Net | $ 10,263,000 | 23,333,000 | 16,949,000 | ||||||||||||
ASU 2016-01 | |||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Increase in Invested Assets | 2,300,000 | 2,300,000 | |||||||||||||
ASU 2016-01 | Retained Earnings/(Deficit) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2,061,000 | 2,061,000 | 0 | 0 | |||||||||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 224,000 | 224,000 | 0 | 0 | |||||||||||
ASU 2018-02 | Retained Earnings/(Deficit) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (2,724,000) | (2,724,000) | 0 | 0 | |||||||||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2,724,000 | 2,724,000 | $ 0 | $ 0 | |||||||||||
ASU 2016-02 | Scenario, Forecast | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Operating Lease, Right-of-Use Asset | $ 74,000,000 | ||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||
Increase (Decrease) in Other Assets | $ 50,000,000 | ||||||||||||||
Increase (Decrease) in Other Liabilities | $ 50,000,000 | ||||||||||||||
Unrealized Loss Related to Equity Securities | ASU 2016-01 | Retained Earnings/(Deficit) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (200,000) | (200,000) | |||||||||||||
Practical Expedient to Measure Certain Other Investments Using the NAV | ASU 2016-01 | Retained Earnings/(Deficit) | |||||||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2,300,000 | $ 2,300,000 | |||||||||||||
[1] | Includes inter-segment revenues of $3.2 million , $6.7 million , and $8.4 million in 2018 , 2017 and 2016 , respectively. For 2018, amounts exclude $7.7 million of Services segment net premiums earned—insurance and net investment income, as both are excluded from the scope of the revenue recognition standard. See Note 4 | ||||||||||||||
[2] | Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement service company, acquired in March 2018. |
Note 3 - Net Income Per Share_2
Note 3 - Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Net income-basic | $ 606,011 | $ 121,088 | $ 308,253 | |||||||||||||||||||
Net income —diluted | $ 606,011 | $ 120,873 | $ 314,069 | |||||||||||||||||||
Average common shares outstanding—basic | 214,267 | 215,321 | 211,789 | |||||||||||||||||||
Dilutive effect of stock-based compensation arrangements | [1] | 4,286 | 4,305 | 2,999 | ||||||||||||||||||
Adjusted average common shares outstanding—diluted | 217,883 | 217,902 | 217,830 | 219,883 | 220,250 | 219,391 | 215,152 | 221,497 | 218,553 | 220,406 | 229,258 | |||||||||||
Net income per share—basic | $ 2.83 | $ 0.56 | $ 1.46 | |||||||||||||||||||
Net income per share—diluted | $ 0.64 | [2] | $ 0.66 | [2] | $ 0.96 | [2] | $ 0.52 | [2] | $ 0.03 | [2],[3] | $ 0.30 | [2] | $ (0.13) | [2] | $ 0.34 | [2] | $ 2.77 | [2] | $ 0.55 | [2] | $ 1.37 | |
Stock Compensation Plan | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 337 | 353 | 1,042 | |||||||||||||||||||
Convertible Debt | Convertible Senior Notes Due 2017 | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Dilutive effect of Convertible Senior Notes | 0 | 323 | 207 | |||||||||||||||||||
Convertible Debt | Convertible Senior Notes Due 2019 | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax | [4] | $ 0 | $ (215) | $ 5,816 | ||||||||||||||||||
Dilutive effect of Convertible Senior Notes | 0 | 457 | 14,263 | |||||||||||||||||||
[1] | The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Year Ended December 31, (In thousands) 2018 2017 2016 Shares of common stock equivalents 337 353 1,042 | |||||||||||||||||||||
[2] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. | |||||||||||||||||||||
[3] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. | |||||||||||||||||||||
[4] | As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. |
Note 4 - Segment Reporting Sche
Note 4 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2013 | Dec. 31, 2017USD ($) | Dec. 31, 2015 | Dec. 31, 2017USD ($) | May 31, 2014USD ($) | ||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||||||||||||||
Net premiums earned—insurance | $ 261,682 | $ 258,431 | $ 251,344 | $ 242,550 | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 1,014,007 | $ 932,773 | $ 921,769 | ||||||||||||||
Services revenue | 38,414 | 36,566 | 36,828 | 33,164 | 39,703 | 39,571 | 37,802 | 38,027 | 144,972 | 155,103 | 168,894 | ||||||||||||||
Net investment income | 42,051 | 38,995 | 37,473 | 33,956 | 33,605 | 32,540 | 30,071 | 31,032 | 152,475 | 127,248 | 113,466 | ||||||||||||||
Other Income | 4,028 | 2,886 | 3,572 | ||||||||||||||||||||||
Provision for losses | 27,140 | 20,881 | 19,337 | 37,283 | 35,178 | 35,841 | 17,222 | 46,913 | 104,641 | 135,154 | 202,788 | ||||||||||||||
Policy acquisition costs | 6,485 | 5,667 | 5,996 | 7,117 | 5,871 | 5,554 | 6,123 | 6,729 | 25,265 | 24,277 | 23,480 | ||||||||||||||
Cost of services | 24,939 | 25,854 | 24,205 | 23,126 | 23,349 | 27,240 | 25,635 | 28,375 | 98,124 | 104,599 | 114,174 | ||||||||||||||
Other operating expenses | 77,266 | 70,125 | 70,184 | 63,243 | 65,999 | 64,195 | 68,750 | 68,377 | 280,818 | 267,321 | 244,896 | ||||||||||||||
Restructuring and other exit costs | 113 | 4,464 | 925 | 551 | 5,230 | 12,038 | 0 | 0 | 6,053 | 17,268 | 0 | ||||||||||||||
Allocation of corporate operating expenses | 94,815 | 72,764 | 56,446 | ||||||||||||||||||||||
Allocation of interest expense | 42,195 | 44,686 | 52,092 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 745,495 | 617,175 | 541,750 | ||||||||||||||||||||||
Total assets | $ 5,900,881 | 6,314,652 | 5,900,881 | 6,314,652 | 5,900,881 | $ 5,900,881 | $ 5,900,881 | ||||||||||||||||||
Net gains (losses) on investments and other financial instruments | (11,705) | $ (4,480) | $ (7,404) | $ (18,887) | (1,339) | $ 2,480 | $ 5,331 | $ (2,851) | (42,476) | 3,621 | 30,751 | ||||||||||||||
Mortgage Insurance Segment | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Net premiums written—insurance | 991,021 | [1] | 818,417 | [2],[3] | 733,834 | [4] | |||||||||||||||||||
(Increase) decrease in unearned premiums | 15,700 | 114,356 | [2] | 187,935 | |||||||||||||||||||||
Net premiums earned—insurance | 1,006,721 | 932,773 | 921,769 | ||||||||||||||||||||||
Services revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Net investment income | 152,102 | 127,248 | 113,466 | ||||||||||||||||||||||
Other Income | 2,794 | 2,886 | 3,572 | ||||||||||||||||||||||
Total Revenue Non GAAP Basis | 1,161,617 | [5],[6] | 1,062,907 | [7],[8] | 1,038,807 | [9],[10] | |||||||||||||||||||
Provision for losses | 104,547 | 136,183 | 204,175 | ||||||||||||||||||||||
Policy acquisition costs | 25,265 | 24,277 | 23,480 | ||||||||||||||||||||||
Cost of services | 0 | ||||||||||||||||||||||||
Other operating expenses | 135,372 | 150,975 | 140,624 | ||||||||||||||||||||||
Restructuring and other exit costs | [11] | 0 | |||||||||||||||||||||||
Total Expenses Non-GAAP | 265,184 | [6] | 311,435 | [8] | 368,279 | [10] | |||||||||||||||||||
Adjusted pretax operating income (loss) before corporate allocations | 896,433 | 751,472 | 670,528 | ||||||||||||||||||||||
Allocation of corporate operating expenses | 80,134 | 55,441 | 45,178 | ||||||||||||||||||||||
Allocation of interest expense | 43,685 | 45,016 | 63,439 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [12] | 772,614 | 651,015 | 561,911 | |||||||||||||||||||||
Total assets | 5,733,918 | 6,138,679 | 5,733,918 | 6,138,679 | 5,733,918 | 5,506,338 | 5,733,918 | 5,733,918 | |||||||||||||||||
Inter-segment revenues included in Services segment | 0 | 0 | 0 | ||||||||||||||||||||||
Inter-segment expenses included in Mortgage Insurance segment | 3,245 | 6,730 | 8,355 | ||||||||||||||||||||||
Reduction in Net Premiums Written | 145,700 | ||||||||||||||||||||||||
Mortgage and Real Estate Services Segment | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Corporate Cash and Investments Allocated to Subsidiary | 0 | 0 | |||||||||||||||||||||||
Net premiums written—insurance | [1],[13] | 7,286 | |||||||||||||||||||||||
(Increase) decrease in unearned premiums | [13] | 0 | |||||||||||||||||||||||
Net premiums earned—insurance | [13] | 7,286 | |||||||||||||||||||||||
Services revenue | 148,217 | 161,833 | 177,249 | ||||||||||||||||||||||
Net investment income | [13] | 373 | |||||||||||||||||||||||
Other Income | [13] | 1,234 | |||||||||||||||||||||||
Total Revenue Non GAAP Basis | 157,110 | [5],[6] | 161,833 | [7],[8] | 177,249 | [9],[10] | |||||||||||||||||||
Provision for losses | [13] | 408 | |||||||||||||||||||||||
Policy acquisition costs | 0 | ||||||||||||||||||||||||
Cost of services | 98,692 | 105,812 | 115,369 | ||||||||||||||||||||||
Other operating expenses | 53,250 | 50,969 | 55,815 | ||||||||||||||||||||||
Restructuring and other exit costs | 2,100 | [11] | 6,828 | [14] | |||||||||||||||||||||
Total Expenses Non-GAAP | 154,450 | [6] | 163,609 | [8] | 171,184 | [10] | |||||||||||||||||||
Adjusted pretax operating income (loss) before corporate allocations | 2,660 | (1,776) | 6,065 | ||||||||||||||||||||||
Allocation of corporate operating expenses | 11,974 | 14,319 | 8,533 | ||||||||||||||||||||||
Allocation of interest expense | 17,805 | 17,745 | 17,693 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [12] | (27,119) | (33,840) | (20,161) | |||||||||||||||||||||
Total assets | 166,963 | [15] | 175,973 | 166,963 | [15] | 175,973 | 166,963 | [15] | 356,836 | 166,963 | [15] | 166,963 | [15] | ||||||||||||
Inter-segment revenues included in Services segment | 3,245 | 6,730 | 8,355 | ||||||||||||||||||||||
Inter-segment expenses included in Mortgage Insurance segment | 0 | 0 | 0 | ||||||||||||||||||||||
Mortgage Insurance and Mortgage and Real Estate Services Segments | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Net premiums written—insurance | 998,307 | [1] | 818,417 | [2],[3] | 733,834 | [4] | |||||||||||||||||||
(Increase) decrease in unearned premiums | 15,700 | 114,356 | [2] | 187,935 | |||||||||||||||||||||
Net premiums earned—insurance | 1,014,007 | 932,773 | 921,769 | ||||||||||||||||||||||
Services revenue | 148,217 | 161,833 | 177,249 | ||||||||||||||||||||||
Net investment income | 152,475 | 127,248 | 113,466 | ||||||||||||||||||||||
Other Income | 4,028 | 2,886 | 3,572 | ||||||||||||||||||||||
Total Revenue Non GAAP Basis | 1,318,727 | [5],[6] | 1,224,740 | [7],[8] | 1,216,056 | [9],[10] | |||||||||||||||||||
Provision for losses | 104,955 | 136,183 | 204,175 | ||||||||||||||||||||||
Policy acquisition costs | 25,265 | 24,277 | 23,480 | ||||||||||||||||||||||
Cost of services | 98,692 | 105,812 | 115,369 | ||||||||||||||||||||||
Other operating expenses | 188,622 | 201,944 | 196,439 | ||||||||||||||||||||||
Restructuring and other exit costs | 2,100 | [11] | 6,828 | [14] | |||||||||||||||||||||
Total Expenses Non-GAAP | 419,634 | [6] | 475,044 | [8] | 539,463 | [10] | |||||||||||||||||||
Adjusted pretax operating income (loss) before corporate allocations | 899,093 | 749,696 | 676,593 | ||||||||||||||||||||||
Allocation of corporate operating expenses | 92,108 | 69,760 | 53,711 | ||||||||||||||||||||||
Allocation of interest expense | 61,490 | 62,761 | 81,132 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 745,495 | 617,175 | 541,750 | ||||||||||||||||||||||
Total assets | $ 5,900,881 | $ 6,314,652 | $ 5,900,881 | $ 6,314,652 | $ 5,900,881 | $ 5,863,174 | $ 5,900,881 | $ 5,900,881 | |||||||||||||||||
Senior Notes | Senior Notes Due 2019 | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||||||||||||||||||||
Reinsurer Concentration Risk | Radian Guaranty | 2016 Single Premium QSR Transaction | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Concentration Risk, Percentage | 65.00% | 20.00% | 35.00% | 35.00% | 35.00% | ||||||||||||||||||||
[1] | Net of ceded premiums written under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. See Note 8 | ||||||||||||||||||||||||
[2] | Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million | ||||||||||||||||||||||||
[3] | Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 | ||||||||||||||||||||||||
[4] | Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 | ||||||||||||||||||||||||
[5] | Excludes net losses on investments and other financial instruments of $42.5 million | ||||||||||||||||||||||||
[6] | Includes inter-segment revenues and expenses as follows: December 31, 2018 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 3,245 Inter-segment expenses included in Mortgage Insurance segment 3,245 — | ||||||||||||||||||||||||
[7] | Excludes net gains on investments and other financial instruments of $3.6 million | ||||||||||||||||||||||||
[8] | Includes inter-segment revenues and expenses as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 6,730 Inter-segment expenses included in Mortgage Insurance segment 6,730 — | ||||||||||||||||||||||||
[9] | Excludes net gains on investments and other financial instruments of $30.8 million | ||||||||||||||||||||||||
[10] | Includes inter-segment revenues and expenses as follows: December 31, 2016 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 8,355 Inter-segment expenses included in Mortgage Insurance segment 8,355 — | ||||||||||||||||||||||||
[11] | Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. | ||||||||||||||||||||||||
[12] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | ||||||||||||||||||||||||
[13] | Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement service company, acquired in March 2018. | ||||||||||||||||||||||||
[14] | Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. | ||||||||||||||||||||||||
[15] | The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other acquired intangible assets. See Note 7 |
Note 4 - Segment Reporting Reco
Note 4 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | $ 745,495 | $ 617,175 | $ 541,750 | |||||||||||
Net Gains (Losses) on Investments and Other Financial Instruments | $ (11,705) | $ (4,480) | $ (7,404) | $ (18,887) | $ (1,339) | $ 2,480 | $ 5,331 | $ (2,851) | (42,476) | 3,621 | 30,751 | |||
Loss on induced conversion and debt extinguishment | 0 | (45,766) | (1,247) | (4,456) | 0 | (51,469) | (75,075) | |||||||
Acquisition-related expenses | [1] | (881) | (105) | (519) | ||||||||||
Goodwill, Impairment Loss | 0 | 0 | (184,374) | 0 | 0 | (184,374) | 0 | |||||||
Amortization and impairment of other acquired intangible assets | (3,461) | (3,472) | (2,748) | (2,748) | (2,629) | (2,890) | (18,856) | (3,296) | (12,429) | (27,671) | (13,221) | |||
Impairment of other long-lived assets | [2] | (5,523) | (10,440) | 0 | ||||||||||
Pretax income | 684,186 | 346,737 | 483,686 | |||||||||||
Other operating expenses | 77,266 | 70,125 | 70,184 | 63,243 | 65,999 | 64,195 | 68,750 | 68,377 | 280,818 | 267,321 | 244,896 | |||
Restructuring and other exit costs | $ 113 | $ 4,464 | $ 925 | $ 551 | $ 5,230 | $ 12,038 | 0 | $ 0 | 6,053 | 17,268 | 0 | |||
Mortgage Insurance Segment | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [3] | 772,614 | 651,015 | 561,911 | ||||||||||
Other operating expenses | 135,372 | 150,975 | 140,624 | |||||||||||
Restructuring and other exit costs | [4] | 0 | ||||||||||||
Mortgage and Real Estate Services Segment | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [3] | (27,119) | (33,840) | (20,161) | ||||||||||
Goodwill, Impairment Loss | $ (184,400) | 0 | (184,374) | |||||||||||
Other operating expenses | 53,250 | 50,969 | $ 55,815 | |||||||||||
Restructuring and other exit costs | 2,100 | [4] | $ 6,828 | [5] | ||||||||||
Asset Impairment Charges | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Other operating expenses | 1,500 | |||||||||||||
Restructuring and other exit costs | $ 4,000 | |||||||||||||
New Insurance Written | Customer Concentration Risk | Mortgage Insurance Segment | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | |||||||||||
[1] | Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. | |||||||||||||
[2] | For the year ended December 31, 2018, this item comprises other operating expenses of $1.5 million and restructuring and other exit costs of $4.0 million , each as included in the consolidated statement of operations. For the year ended December 31, 2017, the full amount is included in restructuring and other exit costs in the consolidated statement of operations. See Note 1 | |||||||||||||
[3] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | |||||||||||||
[4] | Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. | |||||||||||||
[5] | Does not include impairment of long-lived assets and loss from the sale of a business line, which are not components of adjusted pretax operating income. |
Note 4 - Segment Reporting Conc
Note 4 - Segment Reporting Concentration of Risk (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)customer | Dec. 31, 2017customer | Dec. 31, 2016customer | |
Mortgage and Real Estate Services Segment | |||
Corporate Cash and Investments Allocated to Subsidiary | $ | $ 0 | ||
Customer Concentration Risk | Mortgage Insurance Segment | New Insurance Written | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Entity Wide Revenue, Major Customer, Number of Customers | 0 | 0 | 0 |
Customer Concentration Risk | Mortgage Insurance Segment | Earned Premium Benchmark, Amount | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Entity Wide Revenue, Major Customer, Number of Customers | 0 | 0 | 0 |
CALIFORNIA | Geographic Concentration Risk | Mortgage Insurance Segment | Primary Risk In Force | |||
Concentration Risk, Percentage | 12.30% | 12.40% | |
CALIFORNIA | Geographic Concentration Risk | Mortgage Insurance Segment | New Insurance Written | |||
Concentration Risk, Percentage | 11.90% | 14.10% | 14.80% |
Minimum | CALIFORNIA | Geographic Concentration Risk | Mortgage Insurance Segment | Primary Risk In Force | |||
Concentration Risk, Percentage | 10.00% |
Note 5 - Fair Value of Financ_3
Note 5 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Fair Value by Hierarchy Level [Line Items] | |||||
Other Investments | $ 3,415 | $ 334 | |||
Securities Received as Collateral | 11,700 | 19,357 | |||
Loaned securities | 27,860 | 27,964 | |||
Total liabilities | 2,825,937 | 2,900,843 | |||
Carrying (Reported) Amount, Fair Value Disclosure | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Other Investments | 3,400 | ||||
Cost Method Investments | [1] | 0 | 334 | ||
Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 5,177,474 | [2],[3] | 4,671,572 | [4],[5] | |
Total Assets at Fair Value | 5,177,474 | [3],[6] | 4,671,572 | [5] | |
US government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 227,714 | 132,992 | |||
State and municipal obligations | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 324,742 | 386,111 | |||
Money market instruments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 95,132 | 213,357 | |||
Corporate bonds and notes | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 2,564,068 | 2,304,017 | |||
RMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 353,224 | 216,749 | |||
CMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 591,393 | 503,955 | |||
Other ABS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 705,468 | 676,158 | |||
Foreign government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 36,448 | ||||
Equity securities available for sale | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 140,620 | 176,065 | |||
Other investments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 175,113 | [7] | 25,720 | [8] | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 431,096 | [2] | 513,531 | [4] | |
Total Assets at Fair Value | 431,096 | [6] | 513,531 | ||
Fair Value, Inputs, Level 1 | US government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 199,302 | 124,969 | |||
Fair Value, Inputs, Level 1 | State and municipal obligations | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Money market instruments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 95,132 | 213,357 | |||
Fair Value, Inputs, Level 1 | Corporate bonds and notes | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | RMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | CMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Other ABS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Foreign government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | ||||
Fair Value, Inputs, Level 1 | Equity securities available for sale | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 136,662 | 175,205 | |||
Fair Value, Inputs, Level 1 | Other investments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | [7] | 0 | [8] | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 4,746,378 | [2] | 4,158,041 | [4] | |
Total Assets at Fair Value | 4,746,378 | [6] | 4,158,041 | ||
Fair Value, Inputs, Level 2 | US government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 28,412 | 8,023 | |||
Fair Value, Inputs, Level 2 | State and municipal obligations | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 324,742 | 386,111 | |||
Fair Value, Inputs, Level 2 | Money market instruments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Corporate bonds and notes | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 2,564,068 | 2,304,017 | |||
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 353,224 | 216,749 | |||
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 591,393 | 503,955 | |||
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 705,468 | 676,158 | |||
Fair Value, Inputs, Level 2 | Foreign government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 36,448 | ||||
Fair Value, Inputs, Level 2 | Equity securities available for sale | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 3,958 | 860 | |||
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 175,113 | [7] | 25,720 | [8] | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Assets at Fair Value | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | |||
Securities Financing Transaction, Fair Value | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Securities Received as Collateral | [9] | 11,699 | 19,357 | ||
Loaned securities | [10] | 27,860 | $ 27,964 | ||
Securities Financing Transaction, Fair Value | Equity securities available for sale | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Loaned securities | $ 10,400 | ||||
[1] | As a result of implementing the update to the standard for the accounting of financial instruments effective January 1, 2018, other invested assets, primarily consisting of investments in limited partnerships, are no longer carried at amortized cost, and instead are valued in our consolidated balance sheets using the net asset value as a practical expedient to estimate fair value. | ||||
[2] | Does not include certain other invested assets of $3.4 million that is primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million | ||||
[3] | Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 | ||||
[4] | Does not include certain other invested assets of $0.3 million , primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements of $19.4 million | ||||
[5] | Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 | ||||
[6] | Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our consolidated balance sheet. See Note 8 | ||||
[7] | Comprising short-term certificates of deposit and commercial paper. | ||||
[8] | Comprising short-term certificates of deposit and commercial paper. | ||||
[9] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments in our consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our consolidated balance sheets. | ||||
[10] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None |
Note 5 - Fair Value of Financ_4
Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | $ 1,030,348 | $ 1,027,074 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cost Method Investments | [1] | 0 | 334 |
Senior Notes | 1,030,348 | 1,027,074 | |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cost Method Investments, Fair Value Disclosure | [1] | 0 | 3,226 |
Senior Notes, Fair Value | $ 1,007,687 | $ 1,093,934 | |
[1] | As a result of implementing the update to the standard for the accounting of financial instruments effective January 1, 2018, other invested assets, primarily consisting of investments in limited partnerships, are no longer carried at amortized cost, and instead are valued in our consolidated balance sheets using the net asset value as a practical expedient to estimate fair value. |
Note 6 - Investments Available
Note 6 - Investments Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 88,400 | |||
Loaned securities | 27,860 | $ 27,964 | ||
Available-for-sale Securities, Amortized Cost Basis | 3,617,103 | |||
Available-for-sale Securities, Fair Value | [1] | 3,649,447 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 48,778 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16,434 | |||
Fixed-maturities, Available-for-sale, Amortized Cost | 4,098,962 | 3,426,217 | ||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 4,021,575 | 3,458,719 | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 139,377 | 163,106 | ||
Available-for-sale Securities, Equity Securities | 162,830 | |||
US government and agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 69,667 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 69,396 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 96 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 367 | |||
State and municipal obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 156,587 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 161,722 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5,834 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 699 | |||
Corporate bonds and notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 1,869,318 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 1,894,886 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 33,620 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 8,052 | |||
RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 189,455 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 187,229 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 636 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2,862 | |||
CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 451,595 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 453,394 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,409 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,610 | |||
Other ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 672,715 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 674,548 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,655 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 822 | |||
Foreign government and agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 31,417 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 32,207 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 823 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 33 | |||
Total fixed-maturities available for sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed-maturities, Available-for-sale, Amortized Cost | 3,440,754 | |||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | 3,473,382 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 47,073 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 14,445 | |||
Equity securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis | [2] | 176,349 | ||
Available-for-sale Securities, Equity Securities | [2] | 176,065 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | [2] | 1,705 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | [2] | 1,989 | ||
Securities Financing Transaction, Fair Value | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | [3] | 27,860 | 27,964 | |
Securities Financing Transaction, Fair Value | US government and agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | [3] | 9,987 | 0 | |
Securities Financing Transaction, Fair Value | Corporate bonds and notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | [3] | 7,818 | 13,862 | |
Securities Financing Transaction, Fair Value | Foreign government and agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | [3] | 0 | 867 | |
Securities Financing Transaction, Fair Value | Equity securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | [3] | 10,055 | 13,235 | |
Fixed-maturities available for sale | US government and agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 10,700 | |||
Available-for-sale Securities, Amortized Cost Basis | 85,532 | |||
Available-for-sale Securities, Fair Value | [4] | 84,070 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 46 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,508 | |||
Fixed-maturities available for sale | State and municipal obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 138,022 | |||
Available-for-sale Securities, Fair Value | 138,313 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,191 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,900 | |||
Fixed-maturities available for sale | Corporate bonds and notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 2,288,720 | |||
Available-for-sale Securities, Fair Value | 2,229,885 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,053 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 63,888 | |||
Fixed-maturities available for sale | RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 77,700 | |||
Available-for-sale Securities, Amortized Cost Basis | 334,843 | |||
Available-for-sale Securities, Fair Value | [5] | 332,142 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,785 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 4,486 | |||
Fixed-maturities available for sale | CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 546,729 | |||
Available-for-sale Securities, Fair Value | 539,915 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 544 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 7,358 | |||
Fixed-maturities available for sale | Other ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 712,748 | |||
Available-for-sale Securities, Fair Value | 704,662 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 814 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,900 | |||
Fixed-maturities available for sale | Total fixed-maturities available for sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 4,106,594 | |||
Available-for-sale Securities, Fair Value | [6] | 4,028,987 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 10,433 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 88,040 | |||
Fixed-maturities, Available-for-sale, Amortized Cost | [7] | 4,106,594 | ||
Fixed-maturities available for sale—at fair value (amortized cost $4,098,962 and $3,426,217) | [7] | 4,028,987 | ||
Fixed-maturities available for sale | Securities Financing Transaction, Fair Value | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loaned securities | $ 7,400 | [3] | $ 14,700 | |
[1] | Includes $14.7 million of fixed maturity securities and $13.2 million | |||
[2] | Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities. | |||
[3] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None | |||
[4] | Includes securities with a fair value of $10.7 million | |||
[5] | Includes securities with a fair value of $77.7 million | |||
[6] | Includes $7.4 million | |||
[7] | Available for sale includes securities loaned under securities lending agreements with a fair value of $7.4 million |
Note 6 - Investments Gross Unre
Note 6 - Investments Gross Unrealized Losses and Related Fair Values of Available for Sale Securities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 550 | 332 | |
Fair value available-for-sale securities | $ 2,201,228 | $ 1,338,867 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 50,707 | $ 9,827 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 237 | 72 | |
Fair value available-for-sale securities | $ 957,742 | $ 262,531 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 37,333 | $ 6,607 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 787 | 404 | |
Fair value available-for-sale securities | $ 3,158,970 | $ 1,601,398 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 88,040 | 16,434 | |
Other than Temporary Impairment Losses, Investments | 1,744 | 1,420 | $ 526 |
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in Earnings | 0 | 0 | |
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in AOCI | $ 0 | $ 0 | 0 |
US government and agency securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 2 | 6 | |
Fair value available-for-sale securities | $ 27,415 | $ 23,309 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 796 | $ 129 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 8 | 3 | |
Fair value available-for-sale securities | $ 23,476 | $ 9,799 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 712 | $ 238 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 10 | 9 | |
Fair value available-for-sale securities | $ 50,891 | $ 33,108 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 1,508 | $ 367 | |
State and municipal obligations | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 12 | 21 | |
Fair value available-for-sale securities | $ 41,263 | $ 65,898 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 955 | $ 699 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 16 | 0 | |
Fair value available-for-sale securities | $ 39,982 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 945 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 28 | 21 | |
Fair value available-for-sale securities | $ 81,245 | $ 65,898 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 1,900 | $ 699 | |
Corporate bonds and notes | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 330 | 152 | |
Fair value available-for-sale securities | $ 1,208,430 | $ 672,318 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 36,284 | $ 4,601 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 126 | 32 | |
Fair value available-for-sale securities | $ 601,533 | $ 139,105 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 27,604 | $ 3,451 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 456 | 184 | |
Fair value available-for-sale securities | $ 1,809,963 | $ 811,423 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 63,888 | $ 8,052 | |
RMBS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 15 | 8 | |
Fair value available-for-sale securities | $ 92,315 | $ 19,943 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 782 | $ 204 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 28 | 26 | |
Fair value available-for-sale securities | $ 77,395 | $ 101,812 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 3,704 | $ 2,658 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 43 | 34 | |
Fair value available-for-sale securities | $ 169,710 | $ 121,755 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 4,486 | $ 2,862 | |
CMBS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 62 | 35 | |
Fair value available-for-sale securities | $ 328,696 | $ 139,353 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 3,973 | $ 1,395 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 33 | 4 | |
Fair value available-for-sale securities | $ 125,728 | $ 3,518 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 3,385 | $ 215 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 95 | 39 | |
Fair value available-for-sale securities | $ 454,424 | $ 142,871 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 7,358 | $ 1,610 | |
Other ABS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 129 | 92 | |
Fair value available-for-sale securities | $ 503,109 | $ 260,864 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 7,917 | $ 777 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 26 | 7 | |
Fair value available-for-sale securities | $ 89,628 | $ 8,297 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 983 | $ 45 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 155 | 99 | |
Fair value available-for-sale securities | $ 592,737 | $ 269,161 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 8,900 | $ 822 | |
Foreign government and agency securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 5 | ||
Fair value available-for-sale securities | $ 7,397 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 33 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 5 | ||
Fair value available-for-sale securities | $ 7,397 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 33 | ||
Equity securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 13 | ||
Fair value available-for-sale securities | $ 149,785 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 1,989 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 13 | ||
Fair value available-for-sale securities | $ 149,785 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 1,989 | ||
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in Earnings | 500 | ||
Convertible Debt Securities | |||
Continuous Loss Position, Total | |||
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in Earnings | 500 | ||
Debt Securities [Member] | |||
Continuous Loss Position, Total | |||
Other than Temporary Impairment Losses, Investments | $ 1,700 | $ 500 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 400 | ||
Debt and Equity Securities [Member] | |||
Continuous Loss Position, Total | |||
Other than Temporary Impairment Losses, Investments | 1,400 | ||
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in Earnings | $ 1,000 |
Note 6 - Investments Trading Se
Note 6 - Investments Trading Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Other Than Temporary Impairment Losses, Investments, Credit Losses, Portion Recognized in AOCI | $ 0 | $ 0 | $ 0 | |
Debt Securities, Trading, and Equity Securities, FV-NI | 469,071 | 606,434 | [1] | |
State and municipal obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt Securities, Trading, and Equity Securities, FV-NI | 168,359 | 214,841 | ||
Corporate bonds and notes | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt Securities, Trading, and Equity Securities, FV-NI | 228,151 | 307,271 | ||
RMBS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt Securities, Trading, and Equity Securities, FV-NI | 21,083 | 29,520 | ||
CMBS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt Securities, Trading, and Equity Securities, FV-NI | 51,478 | 50,561 | ||
Foreign government and agency securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 0 | $ 4,241 | ||
[1] | At December 31, 2017, includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. |
Note 6 - Investments Securities
Note 6 - Investments Securities Lending Agreements (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Securities Financing Transaction [Line Items] | |||
Securities Lending Rate of Collateral Required | 1.02 | ||
Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings, Description of Potential Risks | The Borrower generally may return the loaned securities to us at any time, which would require us to return the collateral within the standard settlement period for the loaned securities on the principal exchange or market in which the securities are traded. We manage this liquidity risk associated with cash collateral by maintaining the cash collateral in a short-term money-market fund with daily availability. The credit risk under these programs is reduced by the amounts of collateral received. On a daily basis, the value of the underlying securities that we have loaned to the Borrowers is compared to the value of cash and securities collateral we received from the Borrowers, and additional cash or securities are requested or returned, as applicable. In addition, we are indemnified against counterparty credit risk by the intermediary. | ||
Loaned securities | $ 27,860,000 | $ 27,964,000 | |
Reinvested Cash Collateral, Fair Value | 11,700,000 | 19,357,000 | |
Securities Held as Collateral, at Fair Value | $ 0 | ||
Securities Financing Transaction, Fair Value | |||
Securities Financing Transaction [Line Items] | |||
Securities Lending Rate of Collateral Required | 1 | ||
Loaned securities | [1] | $ 27,860,000 | 27,964,000 |
Securities Borrowed, Fair Value of Collateral | [2] | 16,815,000 | 9,342,000 |
Reinvested Cash Collateral, Fair Value | [3] | 11,699,000 | 19,357,000 |
Securities Financing Transaction, Fair Value | US government and agency securities | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 9,987,000 | 0 |
Securities Financing Transaction, Fair Value | Corporate bonds and notes | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 7,818,000 | 13,862,000 |
Securities Financing Transaction, Fair Value | Foreign government and agency securities | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 0 | 867,000 |
Securities Financing Transaction, Fair Value | Equity securities | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | $ 10,055,000 | 13,235,000 |
Foreign government and agency securities | |||
Securities Financing Transaction [Line Items] | |||
Securities Lending Rate of Collateral Required | 1.05 | ||
Securities Financing Transaction, Amortized Cost | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | $ 28,992,000 | $ 27,846,000 | |
[1] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None | ||
[2] | Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. | ||
[3] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments in our consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our consolidated balance sheets. |
Note 6 - Investments Net Invest
Note 6 - Investments Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 159,955 | $ 133,648 | $ 120,213 |
Investment Income, Investment Expense | (7,480) | (6,400) | (6,747) |
Investment Income, Net | 152,475 | 127,248 | 113,466 |
Fixed-maturities available for sale | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 141,552 | 122,890 | 115,880 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 7,157 | 4,318 | 86 |
Short-term Investments | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 10,270 | 5,453 | 3,086 |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 976 | $ 987 | $ 1,161 |
Note 6 - Investments Net Gains
Note 6 - Investments Net Gains (Losses) on Investments and Other Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Other gains (losses), net realized gain (loss) | $ 66 | $ 32 | $ 64 | |||||||||
Realized Gains (Losses) on Investments, Net | (12,094) | (8,603) | 4,313 | |||||||||
Other than Temporary Impairment Losses, Investments | (1,744) | (1,420) | (526) | |||||||||
Net unrealized gains (losses) on trading securities | [1] | (27,287) | 13,230 | 27,217 | ||||||||
Total net gains (losses) on investments | (41,125) | 3,207 | 31,004 | |||||||||
Net gains (losses) on other financial instruments | (1,351) | 414 | (253) | |||||||||
Net Gains (Losses) on Investments and Other Financial Instruments | $ (11,705) | $ (4,480) | $ (7,404) | $ (18,887) | $ (1,339) | $ 2,480 | $ 5,331 | $ (2,851) | (42,476) | 3,621 | 30,751 | |
Fixed-maturities available for sale | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Fixed-maturities available for sale, net realized gain (loss) | [2] | (11,256) | (3,014) | 4,160 | ||||||||
Gross investment gains from sales and redemptions | 1,986 | 6,052 | 10,326 | |||||||||
Gross investment losses from sales and redemptions | (13,242) | (9,066) | (6,166) | |||||||||
Trading Securities | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Trading securities, net realized gain (loss) | (1,840) | (5,995) | (237) | |||||||||
Equity securities | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Equity securities, net realized gain (loss) | 532 | 368 | (170) | |||||||||
Short-term Investments | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Short-term investments, net realized gain (loss) | (10) | (16) | (135) | |||||||||
Other investments | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Other invested assets, net realized gain (loss) | $ 414 | $ 22 | $ 631 | |||||||||
[1] | These amounts include unrealized gains (losses) on investment securities other than securities available for sale. For 2017 and 2016, the unrealized gains (losses) on investments exclude the net change in unrealized gains and losses on equity securities. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income. | |||||||||||
[2] | Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31, (In thousands) 2018 2017 2016 Gross investment gains from sales and redemptions $ 1,986 $ 6,052 $ 10,326 Gross investment losses from sales and redemptions (13,242 ) (9,066 ) (6,166 ) |
Note 6 - Investments Net Unreal
Note 6 - Investments Net Unrealized Gains (Losses) on Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Gain (Loss) on Securities [Line Items] | ||||
Net changes in unrealized gains (losses) on investment securities | $ (25,348) | $ 8,827 | $ 16,850 | |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Equity Securities, Change in Unrealized Holding Gain (Loss) | [1] | (8,886) | 0 | 0 |
Trading Securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (16,462) | $ 8,827 | $ 16,850 | |
[1] | Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income. |
Note 6 - Investments Change in
Note 6 - Investments Change in Unrealized Gains (Losses) Recorded in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | ||||
Unrealized holding gains (losses) arising during the period, net of tax | $ (97,356) | $ 31,903 | $ 8,782 | |
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax | (10,270) | (2,642) | 2,251 | |
Net unrealized gains (losses) on investments, net of tax | (87,086) | 34,545 | 6,531 | |
Fixed-maturities available for sale | ||||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | ||||
Unrealized holding gains (losses) arising during the period, net of tax | (97,356) | 32,147 | 8,822 | |
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax | (10,270) | (2,556) | 2,361 | |
Net unrealized gains (losses) on investments, net of tax | (87,086) | 34,703 | 6,461 | |
Equity securities | ||||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | ||||
Unrealized holding gains (losses) arising during the period, net of tax | [1] | 0 | (244) | (40) |
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax | [1] | 0 | (86) | (110) |
Net unrealized gains (losses) on investments, net of tax | [1] | $ 0 | $ (158) | $ 70 |
[1] | Prior to our implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income. Effective January 1, 2018, we measure our equity investments at fair value, with changes in fair value recognized in net income. |
Note 6 - Investments Contractua
Note 6 - Investments Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | $ 4,098,962 | $ 3,426,217 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 4,021,575 | 3,458,719 | |
Debt Securities [Member] | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | 3,440,754 | ||
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 3,473,382 | ||
RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | 189,455 | ||
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 187,229 | ||
CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | 451,595 | ||
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 453,394 | ||
Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | 672,715 | ||
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | $ 674,548 | ||
Fixed-maturities available for sale | Debt Securities [Member] | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturities, Available-for-sale, Amortized Cost | [1] | 4,106,594 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | [1] | 4,028,987 | |
Fixed-maturities available for sale | Non Asset Backed Security Investments, Contractual Maturities | |||
Available-for-sale Securities, Amortized Cost | |||
Due in one year or less | 56,350 | ||
Due after one year through five years | [2] | 933,807 | |
Due after five years through ten years | [2] | 1,142,145 | |
Due after ten years | [2] | 379,972 | |
Available-for-sale Securities, Fair Value | |||
Due in one year or less | 56,067 | ||
Due after one year through five years | [2] | 920,173 | |
Due after five years through ten years | [2] | 1,107,129 | |
Due after ten years | [2] | 368,899 | |
Fixed-maturities available for sale | RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | [3] | 334,843 | |
Available-for-sale Securities, Fair Value | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | [3] | 332,142 | |
Fixed-maturities available for sale | CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | [3] | 546,729 | |
Available-for-sale Securities, Fair Value | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | [3] | 539,915 | |
Fixed-maturities available for sale | Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | [3] | 712,748 | |
Available-for-sale Securities, Fair Value | |||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | [3] | $ 704,662 | |
[1] | Available for sale includes securities loaned under securities lending agreements with a fair value of $7.4 million | ||
[2] | Actual maturities may differ as a result of calls before scheduled maturity. | ||
[3] | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. |
Note 6 - Investments Other (Det
Note 6 - Investments Other (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Total investments | $ 5,153,029,000 | $ 4,643,942,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 88,400,000 | |
FHLB advances | 82,532,000 | 0 |
Debt Securities [Member] | ||
Investment Holdings [Line Items] | ||
Assets Held by Insurance Regulators | $ 17,600,000 | 11,800,000 |
Minimum | ||
Investment Holdings [Line Items] | ||
Investment as a Percentage of Total Stockholder's Equity | 10.00% | |
List of countries under stress due to economic uncertainty, potential restructuring and ratings downgrades | Debt Security, Government, Non-US [Member] | ||
Investment Holdings [Line Items] | ||
Total investments | $ 0 | $ 0 |
Note 7 - Goodwill and Other A_3
Note 7 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ (184,374) | $ 0 | $ 0 | $ (184,374) | $ 0 |
Mortgage and Real Estate Services Segment | |||||||
Goodwill [Line Items] | |||||||
Beginning Balance, Goodwill, Gross | 197,265 | 197,391 | 197,265 | ||||
Beginning Balance, Accumulated Impairment Loss | (2,095) | (186,469) | (2,095) | ||||
Beginning Balance, Goodwill, Net | $ 195,170 | 10,922 | 195,170 | ||||
Goodwill, Acquired During Period | 3,170 | 126 | |||||
Goodwill, Impairment Loss | $ (184,400) | 0 | (184,374) | ||||
Ending Balance, Goodwill, Gross | 197,391 | 200,561 | 197,391 | 197,265 | |||
Ending Balance, Accumulated Impairment Loss | (186,469) | (186,469) | (186,469) | (2,095) | |||
Beginning Balance, Goodwill, Net | $ 10,922 | $ 14,092 | $ 10,922 | $ 195,170 |
Note 7 - Goodwill and Other A_4
Note 7 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 44,906 | |||
Mortgage and Real Estate Services Segment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 110,350 | $ 112,985 | ||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | (65,444) | (59,695) | ||
Finite-Lived Intangible Assets, Net | 44,906 | 53,290 | ||
Impairment of Intangible Assets, Finite-lived | $ 0 | 0 | ||
Mortgage and Real Estate Services Segment | Client relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 84,000 | 82,530 | ||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | [1] | (48,227) | (41,596) | |
Finite-Lived Intangible Assets, Net | 35,773 | 40,934 | ||
Impairment of Intangible Assets, Finite-lived | 14,900 | |||
Mortgage and Real Estate Services Segment | Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 17,362 | 15,250 | ||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | [2] | (13,141) | (8,922) | |
Finite-Lived Intangible Assets, Net | 4,221 | 6,328 | ||
Impairment of Intangible Assets, Finite-lived | $ 900 | |||
Mortgage and Real Estate Services Segment | Trade names and trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 8,340 | 8,340 | ||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | (3,864) | (3,003) | ||
Finite-Lived Intangible Assets, Net | 4,476 | 5,337 | ||
Mortgage and Real Estate Services Segment | Client backlog | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 6,680 | |||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | (6,006) | |||
Finite-Lived Intangible Assets, Net | 674 | |||
Mortgage and Real Estate Services Segment | Non-competition agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 185 | 185 | ||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | (177) | (168) | ||
Finite-Lived Intangible Assets, Net | 8 | $ 17 | ||
Mortgage and Real Estate Services Segment | Licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 463 | |||
Finite-Lived Intangible Assets, Accumulated Amortization and Impairment | (35) | |||
Finite-Lived Intangible Assets, Net | $ 428 | |||
[1] | Includes an impairment charge of $14.9 million | |||
[2] | Includes an impairment charge of $0.9 million |
Note 7 - Goodwill and Other A_5
Note 7 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Finite Lived Assets Future Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 12,400 | $ 11,800 | $ 13,200 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 8,688 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 7,321 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 5,907 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5,375 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 4,923 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 12,692 | ||
Finite-Lived Intangible Assets, Net | $ 44,906 |
Note 7 - Goodwill and Other A_6
Note 7 - Goodwill and Other Acquired Intangible Assets, Net Accounting Policy Considerations (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Minimum | Client relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Minimum | Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Minimum | Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
Minimum | Licenses | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Minimum | Non-competition agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
Maximum | Client relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Maximum | Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Maximum | Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Maximum | Non-competition agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Mortgage and Real Estate Services Segment | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Number of Reporting Units | 1 |
Note 7 - Goodwill and Other A_7
Note 7 - Goodwill and Other Acquired Intangible Assets, Net Impairment Analysis (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of goodwill | $ 0 | $ 0 | $ 184,374 | $ 0 | $ 0 | $ 184,374 | $ 0 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years | ||||||
Mortgage and Real Estate Services Segment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of goodwill | 184,400 | $ 0 | $ 184,374 | ||||
Impairment of Intangible Assets, Finite-lived | 0 | $ 0 | |||||
Number of Customers with Renewed Contract Terms | customer | 1 | ||||||
Client relationships | Mortgage and Real Estate Services Segment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of Intangible Assets, Finite-lived | 14,900 | ||||||
Technology | Mortgage and Real Estate Services Segment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of Intangible Assets, Finite-lived | 900 | ||||||
Other Intangible Assets | Mortgage and Real Estate Services Segment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of Intangible Assets, Finite-lived | $ 15,800 |
Note 8 - Reinsurance Reinsuranc
Note 8 - Reinsurance Reinsurance Premiums (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Premiums Earned, Net [Abstract] | |||||||||||||||
Direct Premiums Earned | $ 1,074,298 | $ 990,016 | $ 999,093 | ||||||||||||
Assumed Premiums Earned | 6,904 | 28 | 35 | ||||||||||||
Ceded Premiums Earned | (67,195) | (57,271) | (77,359) | ||||||||||||
Net premiums earned—insurance | $ 261,682 | $ 258,431 | $ 251,344 | $ 242,550 | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | 1,014,007 | 932,773 | 921,769 | ||||
Mortgage Insurance Segment | |||||||||||||||
Premiums Written, Net [Abstract] | |||||||||||||||
Direct Premiums Written | 1,082,285 | 1,032,735 | 1,000,111 | ||||||||||||
Assumed Premiums Written | 6,901 | [1] | 25 | 29 | |||||||||||
Ceded Premiums Written | [2] | (98,165) | (214,343) | (266,306) | |||||||||||
Net premiums written—insurance | 991,021 | [3] | 818,417 | [4],[5] | 733,834 | [6] | |||||||||
Premiums Earned, Net [Abstract] | |||||||||||||||
Direct Premiums Earned | 1,066,864 | 990,016 | 999,093 | ||||||||||||
Assumed Premiums Earned | 6,904 | [1] | 28 | 35 | |||||||||||
Ceded Premiums Earned | [2] | (67,047) | (57,271) | (77,359) | |||||||||||
Net premiums earned—insurance | $ 1,006,721 | $ 932,773 | $ 921,769 | ||||||||||||
[1] | Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. | ||||||||||||||
[2] | Net of profit commission. | ||||||||||||||
[3] | Net of ceded premiums written under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. See Note 8 | ||||||||||||||
[4] | Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million | ||||||||||||||
[5] | Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 | ||||||||||||||
[6] | Net of ceded premiums written under the QSR Program and the Single Premium QSR Program. See Note 8 |
Note 8 - Reinsurance Reinsura_2
Note 8 - Reinsurance Reinsurance Transaction Details (Details) $ in Thousands | Dec. 31, 2017USD ($) | Oct. 31, 2017USD ($) | Dec. 31, 2018USD ($)group | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2013 | Dec. 31, 2017USD ($) | Dec. 31, 2015 | Dec. 31, 2017USD ($) | |
Ceded Credit Risk [Line Items] | ||||||||||
Ceded Premiums Earned | $ 67,195 | $ 57,271 | $ 77,359 | |||||||
Radian Guaranty | 2016 Single Premium QSR Transaction | Reinsurer Concentration Risk | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Concentration Risk, Percentage | 65.00% | 20.00% | 35.00% | 35.00% | 35.00% | |||||
Ceded Insurance Commission Percentage | 25.00% | |||||||||
RIF Ceded | $ 6,900,000 | $ 6,300,000 | 6,900,000 | 3,800,000 | $ 6,900,000 | $ 6,900,000 | ||||
Radian Guaranty | 2016 Single Premium QSR Transaction | Reinsurer Concentration Risk | Maximum | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Ceded Premiums Written | 195,000 | |||||||||
Loss Ratio | 55.00% | |||||||||
Radian Guaranty | 2018 Single Premium QSR Transaction | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Ceded Premiums Written | $ 335,000 | |||||||||
Ceded Insurance Commission Percentage | 25.00% | |||||||||
Percentage of NIW Able to be Ceded Under QSA | 65.00% | |||||||||
Number of GSEs | group | 1 | |||||||||
Radian Guaranty | 2018 Single Premium QSR Transaction | Maximum | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Loss Ratio | 56.00% | |||||||||
Radian Guaranty | 2018 Single Premium QSR Transaction | Reinsurer Concentration Risk | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
RIF Ceded | $ 1,900,000 | |||||||||
Radian Guaranty | QSR Program | Reinsurer Concentration Risk | First Lien Mortgage Insurance Products | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Ceded Premiums Written | [1] | 13,486 | 19,356 | 28,097 | ||||||
Ceded Premiums Earned | [1] | 19,660 | 28,503 | 42,515 | ||||||
Ceding Commissions Written | 3,890 | 5,536 | 8,019 | |||||||
Ceding Commissions Earned | [2] | 11,349 | 13,122 | 16,573 | ||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 771 | 512 | 771 | 1,858 | 771 | 771 | ||||
Radian Guaranty | Single Premium QSR Transaction | Reinsurer Concentration Risk | First Lien Mortgage Insurance Products | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Ceded Premiums Written | [1] | 74,876 | 193,517 | 233,206 | ||||||
Ceded Premiums Earned | [1] | 44,286 | 27,284 | 29,808 | ||||||
Ceding Commissions Written | 29,745 | 55,333 | 66,153 | |||||||
Ceding Commissions Earned | [2] | 22,097 | 13,774 | 15,303 | ||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 2,490 | 4,574 | 2,490 | 2,262 | 2,490 | 2,490 | ||||
First Lien Mortgage Insurance Products | Radian Guaranty | QSR Program | Reinsurer Concentration Risk | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
RIF Ceded | $ 1,200,000 | $ 900,000 | $ 1,200,000 | $ 1,600,000 | $ 1,200,000 | $ 1,200,000 | ||||
[1] | Net of profit commission. | |||||||||
[2] | Includes amounts reported in policy acquisition costs and other operating expenses. |
Note 8 - Reinsurance Excess-of-
Note 8 - Reinsurance Excess-of-Loss Program (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [2] | Dec. 31, 2016USD ($) | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [1] | $ 434,034 | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 435,148 | ||||||
Debt Instrument, Description of Variable Rate Basis | P1M | ||||||
Eagle Re | |||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [1] | $ 434,034 | |||||
Number of Events | 2 | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 435,148 | ||||||
Derivative Asset | 1,100 | ||||||
Mortgage Insurance Segment | |||||||
Risk In Force | 56,700,000 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | $ 215,948 | $ 390,380 | $ 417,562 | ||||
Mortgage Insurance Segment | Radian Guaranty | |||||||
Reinsurance Retention Policy, Option to Terminate, Period | 5 years | ||||||
Reinsurance Retention Policy, Option to Terminate, Period | 10 years | ||||||
Mortgage Insurance Segment | Radian Guaranty | Eagle Re | |||||||
Proceeds from Issuance of Debt | $ 434,000 | ||||||
Risk Margin Component of Reinsurance Premium Payable, Percent | 0.50 | ||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 434,000 | ||||||
Risk In Force | 9,100,000 | ||||||
Mortgage Insurance Segment | Radian Guaranty | Separate Third-Party Reinsurer | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 21,400 | ||||||
XOL First Layer | Mortgage Insurance Segment | Radian Guaranty | |||||||
Reinsurance Retention Policy, Amount Retained | 204,900 | ||||||
XOL Second Layer | Mortgage Insurance Segment | Radian Guaranty | Eagle Re | |||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | ||||||
XOL Second Layer | Mortgage Insurance Segment | Radian Guaranty | Separate Third-Party Reinsurer | |||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 10.00% | ||||||
XOL Second Layer | Mortgage Insurance Segment | Radian Guaranty | Eagle Re and Separate Third-Party Reinsurer | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 214,100 | ||||||
XOL Third Layer | Mortgage Insurance Segment | Radian Guaranty | Eagle Re | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 241,400 | ||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | ||||||
On-Balance Sheet | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 1,114 | ||||||
On-Balance Sheet | Eagle Re | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [3] | 1,114 | |||||
Off-Balance Sheet | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [4] | 434,034 | |||||
Off-Balance Sheet | Eagle Re | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [4] | $ 434,034 | |||||
Scenario, Forecast | Radian Guaranty | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | [2] | $ 660,400 | |||||
[1] | Eagle Re’s assets are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Eagle Re’s liabilities consist of its mortgage insurance-linked notes of $434.0 million | ||||||
[2] | Includes the payment of $54.8 million | ||||||
[3] | Represents the fair value of the related embedded derivative, included in other assets in our consolidated balance sheets. | ||||||
[4] | Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million |
Note 8 - Reinsurance Other (Det
Note 8 - Reinsurance Other (Details) - Mortgage and Real Estate Services Segment - EnTitle Insurance $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Concentration Risk, Percentage | 100.00% |
Reinsurance Retention, Net Loss Per Claim | $ 1 |
Note 9 - Other Assets Component
Note 9 - Other Assets Components of Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Jan. 31, 2019 | ||
Deposit with the IRS | [1] | $ 0 | $ 88,557 | |||
Company-owned life insurance | 83,377 | 85,862 | ||||
Internal-use software | [2] | 51,367 | 48,751 | |||
Current federal income taxes receivable | [1] | 44,506 | 0 | |||
Property and equipment | [3] | 37,090 | 38,291 | |||
Accrued investment income | 34,878 | 31,389 | ||||
Loaned securities (Note 6) | 27,860 | 27,964 | ||||
Unbilled receivables | 19,917 | 22,257 | ||||
Deferred policy acquisition costs | 17,311 | 16,987 | ||||
Reinsurance recoverables | 14,402 | 8,492 | ||||
Other | 36,992 | 39,299 | ||||
Total other assets | 367,700 | 407,849 | ||||
Internal-use software, accumulated amortization | 60,300 | 48,400 | ||||
Impairments of internal-use software | 5,100 | |||||
Internal-use software, amortization expense | 11,400 | 10,700 | $ 6,000 | |||
Property and equipment, accumulated depreciation | 62,900 | 57,600 | ||||
Property and equipment, depreciation expense | 8,000 | $ 6,900 | $ 5,600 | |||
Internal Revenue Service (IRS) | REMIC Residual | ||||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | 31,000 | |||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Refunded | $ 58,000 | |||||
Internal Revenue Service (IRS) | REMIC Residual | Subsequent Event | ||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 33,000 | |||||
Internal Revenue Service (IRS) | REMIC Residual | Scenario, Forecast | ||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 25,000 | |||||
[1] | In 2018, Radian utilized its “qualified deposits” with the U.S. Treasury to settle its $31 million obligation to the IRS, and in 2019, the Company expects the IRS to refund to Radian the remaining $58 million that was previously on deposit. As such, the remaining balances of the deposits with the IRS as of December 31, 2018 are included in current federal income tax receivable. In January 2019, we received $33 million of the $58 million refund from the IRS and expect to receive the remaining $25 million in the coming months. See Note 10 | |||||
[2] | nternal-use software, at cost, has been reduced by accumulated amortization of $60.3 million and $48.4 million at December 31, 2018 and 2017 , respectively, as well as $5.1 million of impairment charges in 2018. Amortization expense was $11.4 million , $10.7 million and $6.0 million for the years ended December 31, 2018 , 2017 and 2016 | |||||
[3] | Property and equipment at cost, less accumulated depreciation of $62.9 million and $57.6 million at December 31, 2018 and 2017 , respectively. Depreciation expense was $8.0 million , $6.9 million and $5.6 million for the years ended December 31, 2018 , 2017 and 2016 |
Note 10 - Income Taxes Schedule
Note 10 - Income Taxes Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current (benefit) provision | $ (42,398) | $ 59,122 | $ 4,546 |
Deferred income tax (benefit) expense | 120,573 | 166,527 | 170,887 |
Income tax (benefit) provision | $ 78,175 | $ 225,649 | $ 175,433 |
Note 10 - Income Taxes Reconcil
Note 10 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal Statutory Income Tax Rate | 21.00% | 35.00% | 35.00% |
Provision for income taxes computed at the statutory tax rate | $ 143,679,000 | $ 121,358,000 | $ 169,290,000 |
Repurchase premium on convertible notes | 0 | (96,000) | 9,988,000 |
State tax provision (benefit), net of federal impact | 5,570,000 | (15,641,000) | (8,974,000) |
Valuation allowance | (1,856,000) | 18,197,000 | 10,663,000 |
Remeasurement of net deferred tax assets due to the TCJA | 0 | 102,617,000 | 0 |
Effective Income Tax rate Reconciliation, Impact of IRS Settlement | (73,585,000) | 0 | 0 |
Other, net | 4,367,000 | (786,000) | (5,534,000) |
Income tax (benefit) provision | 78,175,000 | $ 225,649,000 | $ 175,433,000 |
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 |
Note 10 - Income Taxes Deferred
Note 10 - Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of Deferred Tax Assets [Abstract] | ||
Accrued expenses | $ 17,487 | $ 30,267 |
Unearned premiums | 34,686 | 35,035 |
Differences in fair value of financial instruments | 1,115 | 0 |
Net unrealized loss on investments | 16,297 | 0 |
State income taxes | 67,069 | 68,577 |
Partnership Investments | 0 | 47,991 |
Loss reserves | 1,044 | 1,397 |
Alternative minimum tax credit carryforward | 0 | 57,086 |
Goodwill and intangibles | 35,068 | 36,947 |
Deferred Tax Assets, Deferred Policy Acquisition and Ceding Commission Costs | 15,288 | 14,888 |
Deferred Tax Assets, Share-Based Compensation | 10,776 | 10,190 |
Other | 13,091 | 16,421 |
Total deferred tax assets | 211,921 | 318,799 |
Components of Deferred Tax Liabilities [Abstract] | ||
Partnership investments | 639 | 0 |
Differences in fair value of financial instruments | 0 | 3,833 |
Net unrealized gain on investments | 0 | 6,792 |
Depreciation | 12,201 | 11,138 |
Other | 2,942 | 2,446 |
Total deferred tax liabilities | 15,782 | 24,209 |
Less: Valuation allowance | 64,496 | 65,023 |
Net deferred tax asset | $ 131,643 | $ 229,567 |
Note 10 - Income Taxes Tax Refo
Note 10 - Income Taxes Tax Reform (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Remeasurement of Net DTA, Amount | $ 0 | $ 102,617,000 | $ 0 |
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 |
Note 10 - Income Taxes Current
Note 10 - Income Taxes Current and Deferred Taxes (Details) $ in Millions | Dec. 31, 2018USD ($) |
Income Tax Disclosure [Abstract] | |
Income Taxes Receivable, Current | $ 43.8 |
Uncertain Tax Position Liability | 33.6 |
Operating Loss Carryforwards | 2.2 |
State net operating loss carryforward | $ 67.7 |
Note 10 - Income Taxes Valuatio
Note 10 - Income Taxes Valuation Allowances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Income Tax, Valuation Allowances [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 64,496 | $ 65,023 |
Note 10 - Income Taxes IRS Matt
Note 10 - Income Taxes IRS Matter (Details) - REMIC Residual - Internal Revenue Service (IRS) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | ||
Income Tax Expense (Benefit) Recorded as a Result of Finalized IRS Settlement | $ (73.6) | |
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | $ 31 | |
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Refunded | $ 58 |
Note 10 - Income Taxes Unrecogn
Note 10 - Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 16,600 | |||
Unrecognized Tax Benefits, Interest and Penalties Charged to Income | (61,600) | $ 2,200 | $ 1,800 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of period | $ 33,552 | 123,951 | 123,028 | |
Tax positions related to the current year [Abstract] | ||||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 5,058 | 2,343 | ||
Tax positions related to prior years [Abstract] | ||||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 26,465 | 24,122 | ||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (43,146) | (1,437) | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (52,353) | 0 | ||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (26,423) | (24,105) | ||
Balance at end of period | 33,552 | $ 123,951 | $ 123,028 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ (90,400) | |||
Scenario, Forecast | ||||
Tax positions related to prior years [Abstract] | ||||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | $ (6,500) |
Note 11 - Losses and LAE Reserv
Note 11 - Losses and LAE Reserve for Losses and LAE by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reserve for losses and LAE | $ 401,361 | $ 507,588 | ||||
Mortgage insurance loss reserves | ||||||
Reserve for losses and LAE | 397,891 | [1] | 507,588 | $ 760,269 | $ 976,399 | |
Services loss reserves | ||||||
Reserve for losses and LAE | [2] | $ 3,470 | $ 0 | |||
[1] | Excludes Services reserve for losses and LAE of $3.5 million | |||||
[2] | A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018. |
Note 11 - Losses and LAE Mortga
Note 11 - Losses and LAE Mortgage Insurance Reserve for Losses and LAE by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reinsurance recoverables | $ 14,402 | $ 8,492 | ||||
Reserve for losses and LAE | 401,361 | 507,588 | ||||
Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reserve for losses and LAE | 397,891 | [1] | 507,588 | $ 760,269 | $ 976,399 | |
Prime | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Unpaid Claims | 231,169 | 285,022 | ||||
Alt-A and A minus and below | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Unpaid Claims | 119,527 | 170,873 | ||||
Primary Mortgage Product | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
IBNR and other | 13,864 | 16,021 | ||||
LAE | 10,271 | 13,349 | ||||
Reinsurance recoverables | [2] | 10,992 | 8,315 | |||
Total primary reserves | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reserve for losses and LAE | 385,823 | 493,580 | ||||
Total pool reserves | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reinsurance recoverables | 17 | 35 | ||||
Reserve for losses and LAE | [3] | 11,640 | 13,463 | |||
Total First-lien reserves | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reserve for losses and LAE | 397,463 | 507,043 | ||||
Other (Second-lien reserves) | Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reserve for losses and LAE | [4] | $ 428 | $ 545 | |||
[1] | Excludes Services reserve for losses and LAE of $3.5 million | |||||
[2] | Represents ceded losses on reinsurance transactions, including the QSR Program and the Single Premium QSR Program. These amounts are included in the reinsurance recoverables reported in other assets in our consolidated balance sheets. | |||||
[3] | Includes reinsurance recoverable of $17 thousand and $35 thousand as of December 31, 2018 and December 31, 2017 | |||||
[4] | Does not include our second-lien PDR that is included in other liabilities. |
Note 11 - Losses and LAE Mort_2
Note 11 - Losses and LAE Mortgage Insurance Loss Reserves Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Loss reserve [Roll Forward] | |||||||||
Balance at January 1 | $ 401,361 | $ 507,588 | |||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Balance at December 31 | 401,361 | $ 507,588 | |||||||
Mortgage Insurance Segment | |||||||||
Loss reserve [Roll Forward] | |||||||||
Balance at January 1 | 397,891 | [1] | 507,588 | 760,269 | $ 976,399 | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | [2] | 11,009 | 8,350 | 6,851 | 8,286 | ||||
Balance at beginning of period, net of reinsurance recoverables | 386,882 | 499,238 | 753,418 | 968,113 | |||||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | |||||||||
Current year | [3] | 135,291 | 185,486 | 206,383 | |||||
Prior years | (31,699) | (49,286) | (3,516) | ||||||
Total incurred losses and LAE | 103,592 | 136,200 | 202,867 | ||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Paid Losses and LAE Current year | [3] | 5,856 | 25,011 | 11,410 | |||||
Paid losses and LAE Prior years | 210,092 | 365,369 | 406,152 | ||||||
Total paid losses and LAE | 215,948 | 390,380 | [4] | 417,562 | |||||
Balance at end of period, net of reinsurance recoverables | 386,882 | 499,238 | 753,418 | ||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | [2] | $ 11,009 | 8,350 | 6,851 | 8,286 | ||||
Balance at December 31 | $ 397,891 | [1] | $ 507,588 | $ 760,269 | |||||
2013 Freddie Mac Agreement | Mortgage Insurance Segment | |||||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Paid losses and LAE Prior years | $ 54,800 | ||||||||
[1] | Excludes Services reserve for losses and LAE of $3.5 million | ||||||||
[2] | Related to ceded losses recoverable, if any, on reinsurance transactions, the QSR Program and the Single Premium QSR Program. See Note 8 | ||||||||
[3] | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. | ||||||||
[4] | Includes the payment of $54.8 million |
Note 11 - Losses and LAE Rese_2
Note 11 - Losses and LAE Reserve Activity (Details) - incident | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Insurance Segment | Primary Mortgage Product | ||||
Default To Claim Rate Estimate, Gross, For New Defaults | 8.00% | 10.00% | 12.00% | |
Hurricanes Harvey and Irma | ||||
Number of Natural Disasters | 2 | |||
Hurricanes Harvey and Irma | Mortgage Insurance Segment | Primary Mortgage Product | ||||
Default To Claim Rate Estimate, Gross, For New Defaults | 3.00% |
Note 11 - Losses and LAE Rese_3
Note 11 - Losses and LAE Reserve Assumptions (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017incident | Dec. 31, 2016 | |
Mortgage Insurance Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | $ 32 | $ 31 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 11.3 | $ 10.4 | ||
Percentage Point Change In Severity Used In Assumption Shift Analysis | 0 | |||
First Lien Primary Claim Severity | 96.00% | |||
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity | $ 3.8 | |||
Percentage Point Change In Severity Used In Assumption Shift Analysis | 0 | |||
Impact To Loss Reserves Based On One Percentage Change in Default To Claim Rate | $ 10.4 | |||
Mortgage Insurance Segment | Primary Mortgage Product | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions | 33.00% | 31.00% | ||
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions | 31.00% | 29.00% | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 8.00% | 10.00% | 12.00% | |
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements Excluding Defaults in FEMA Designated Areas | 33.00% | 38.00% | ||
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 68.00% | 62.00% | ||
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 75.00% | 81.00% | ||
Hurricanes Harvey and Irma | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Number of Natural Disasters | incident | 2 | |||
Hurricanes Harvey and Irma | Mortgage Insurance Segment | Primary Mortgage Product | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Default To Claim Rate Estimate, Gross, For New Defaults | 3.00% |
Note 11 - Losses and LAE Additi
Note 11 - Losses and LAE Additional Disclosures: Claims Development (Details) $ in Thousands | Dec. 31, 2018USD ($)paymentdefault | Dec. 31, 2017USD ($)default | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | |
Claims Development [Line Items] | |||||||||||
Number Of Payments Missed For Insured Loans | payment | 2 | ||||||||||
Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 6,299,253 | ||||||||||
Short-duration Insurance Contracts, Accident Year 2009 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,025,828 | $ 2,022,629 | $ 2,018,907 | $ 2,016,412 | $ 1,991,796 | $ 1,974,568 | $ 1,939,479 | $ 1,930,263 | $ 1,894,783 | $ 1,671,239 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 1,572 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 213,836 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 1,221,938 | 1,219,469 | 1,218,264 | 1,220,289 | 1,207,774 | 1,195,056 | 1,192,482 | 1,215,136 | $ 1,102,856 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 1,019 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 146,324 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 1,060,376 | 1,059,116 | 1,061,161 | 1,062,579 | 1,050,555 | 1,052,277 | 1,152,016 | $ 1,058,625 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 970 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 118,972 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 713,750 | 714,783 | 715,646 | 720,502 | 711,213 | 763,969 | $ 803,831 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 586 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 89,845 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 400,243 | 402,259 | 404,333 | 401,444 | 405,334 | $ 505,732 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 344 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 71,749 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 260,098 | 264,620 | 265,891 | 247,074 | $ 337,784 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 241 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 58,215 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 183,952 | 178,042 | 198,186 | $ 222,555 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 292 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 49,825 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 149,753 | 165,440 | $ 201,016 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 428 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 46,264 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 151,802 | $ 180,851 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 1,212 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 47,283 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 131,513 | ||||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [1] | $ 1,876 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 39,598 | |||||||||
Hurricanes Harvey and Irma | Short-duration Insurance Contracts, Accident Year 2017 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 8,862 | |||||||||
Hurricanes Harvey and Irma | Short-duration Insurance Contracts, Accident Year 2018 | Property, Liability and Casualty Insurance Product Line | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | default | [2] | 3,776 | |||||||||
[1] | Represents reserves as of December 31, 2018 | ||||||||||
[2] | Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2018 and December 31, 2017 are 3,776 and 8,862 |
Note 11 - Losses and LAE Addi_2
Note 11 - Losses and LAE Additional Disclosures: Cumulative Paid Claims / Reconciliation of Outstanding Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Reserve for losses and LAE | $ 401,361 | $ 507,588 | ||||||||||
Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 5,956,343 | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 6,299,253 | |||||||||||
Mortgage Insurance Segment | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | [1] | 11,009 | 8,350 | $ 6,851 | $ 8,286 | |||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 10,493 | |||||||||||
Reserve for losses and LAE | 397,891 | [2] | 507,588 | 760,269 | 976,399 | |||||||
Mortgage Insurance Segment | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 376,389 | |||||||||||
Mortgage and Real Estate Services Segment | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Reserve for losses and LAE | [3] | 3,470 | 0 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 2,004,219 | 1,986,076 | 1,958,660 | 1,921,134 | $ 1,807,031 | $ 1,711,019 | $ 1,471,264 | $ 1,236,210 | $ 619,496 | $ 136,413 | ||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,025,828 | 2,022,629 | 2,018,907 | 2,016,412 | 1,991,796 | 1,974,568 | 1,939,479 | 1,930,263 | 1,894,783 | $ 1,671,239 | ||
Short-duration Insurance Contracts, Accident Year 2010 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,210,281 | 1,198,031 | 1,178,546 | 1,145,497 | 1,055,935 | 956,598 | 700,316 | 394,278 | 11,810 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,221,938 | 1,219,469 | 1,218,264 | 1,220,289 | 1,207,774 | 1,195,056 | 1,192,482 | 1,215,136 | $ 1,102,856 | |||
Short-duration Insurance Contracts, Accident Year 2011 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,048,966 | 1,038,582 | 1,016,855 | 982,830 | 892,959 | 756,820 | 323,216 | 40,392 | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,060,376 | 1,059,116 | 1,061,161 | 1,062,579 | 1,050,555 | 1,052,277 | 1,152,016 | $ 1,058,625 | ||||
Short-duration Insurance Contracts, Accident Year 2012 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 702,136 | 692,291 | 672,271 | 631,982 | 528,744 | 295,332 | 19,200 | |||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 713,750 | 714,783 | 715,646 | 720,502 | 711,213 | 763,969 | $ 803,831 | |||||
Short-duration Insurance Contracts, Accident Year 2013 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 388,688 | 379,036 | 357,087 | 307,361 | 191,040 | 34,504 | ||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 400,243 | 402,259 | 404,333 | 401,444 | 405,334 | $ 505,732 | ||||||
Short-duration Insurance Contracts, Accident Year 2014 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 246,611 | 233,607 | 200,422 | 115,852 | 13,108 | |||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 260,098 | 264,620 | 265,891 | 247,074 | $ 337,784 | |||||||
Short-duration Insurance Contracts, Accident Year 2015 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 163,916 | 142,421 | 84,271 | 10,479 | ||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 183,952 | 178,042 | 198,186 | $ 222,555 | ||||||||
Short-duration Insurance Contracts, Accident Year 2016 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 119,357 | 76,616 | 11,061 | |||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 149,753 | 165,440 | $ 201,016 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 66,585 | 24,653 | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 151,802 | $ 180,851 | ||||||||||
Short-duration Insurance Contracts, Accident Year 2018 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 5,584 | |||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 131,513 | |||||||||||
Short-duration Insurance Contracts, Accident Year Prior to 2009 | Property, Liability and Casualty Insurance Product Line | ||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 33,479 | |||||||||||
[1] | Related to ceded losses recoverable, if any, on reinsurance transactions, the QSR Program and the Single Premium QSR Program. See Note 8 | |||||||||||
[2] | Excludes Services reserve for losses and LAE of $3.5 million | |||||||||||
[3] | A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018. |
Note 11 - Losses and LAE Addi_3
Note 11 - Losses and LAE Additional Disclosures: Historical Claims Duration (Details) - Property, Liability and Casualty Insurance Product Line | Dec. 31, 2018 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 6.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 34.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 31.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 13.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 2.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.90% |
Note 12 - Senior Notes Schedule
Note 12 - Senior Notes Schedule of Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,030,348 | $ 1,027,074 |
Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |
Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |
Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,030,348 | $ 1,027,074 |
Senior Notes | Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |
Senior Notes | $ 158,324 | 157,636 |
Senior Notes | Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |
Senior Notes | $ 232,729 | 231,834 |
Senior Notes | Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Senior Notes | $ 195,867 | 195,146 |
Senior Notes | Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Senior Notes | $ 443,428 | $ 442,458 |
Note 12 - Senior Notes Extingui
Note 12 - Senior Notes Extinguishment of Debt (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jan. 27, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Aug. 12, 2016 |
Gain (Loss) on Repurchase of Debt Instrument | $ 0 | $ 51,469 | $ 75,075 | |||||||||
Proceeds from Hedge, Financing Activities | 0 | 4,208 | 0 | |||||||||
Loss on induced conversion and debt extinguishment | $ 0 | $ 45,766 | $ 1,247 | $ 4,456 | $ 0 | 51,469 | 75,075 | |||||
Senior Notes due 2019, 2020, and 2021 | ||||||||||||
Repayments of Senior Debt | 450,800 | |||||||||||
Convertible Senior Notes Due 2017 | ||||||||||||
Repayments of Convertible Debt | 31,600 | |||||||||||
Convertible Senior Notes Due 2019 | ||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 4,500 | |||||||||||
Repayments of Convertible Debt | 110,100 | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ 10.60 | |||||||||||
Senior Notes | Senior Notes Due 2019 | ||||||||||||
Debt Instrument, Repurchased Face Amount | 141,400 | |||||||||||
Long-term Debt, Gross | 158,600 | 158,600 | ||||||||||
Senior Notes | Senior Notes Due 2020 | ||||||||||||
Debt Instrument, Repurchased Face Amount | 115,900 | |||||||||||
Long-term Debt, Gross | 234,100 | 234,100 | ||||||||||
Senior Notes | Senior Notes Due 2021 | ||||||||||||
Debt Instrument, Repurchased Face Amount | 152,300 | |||||||||||
Long-term Debt, Gross | 197,700 | 197,700 | ||||||||||
Senior Notes | Senior Notes due 2019, 2020, and 2021 | ||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 45,800 | |||||||||||
Senior Notes | Senior Notes Due 2017 | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 195,500 | |||||||||||
Repayments of Senior Debt | $ 211,300 | |||||||||||
Loss on induced conversion and debt extinguishment | $ 15,000 | |||||||||||
Convertible Debt | Convertible Senior Notes Due 2017 | ||||||||||||
Debt Instrument, Repurchased Face Amount | 0 | 21,600 | 0 | 30,100 | ||||||||
Gain (Loss) on Repurchase of Debt Instrument | 1,200 | |||||||||||
Proceeds from Hedge, Financing Activities | $ 4,100 | |||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 0.2 | |||||||||||
Convertible Debt, Termination of Capped Call Transaction, Total Consideration | $ 2,600 | |||||||||||
Convertible Debt, Termination of Capped Call Transaction, Closing Stock Price | $ 11.86 | |||||||||||
Convertible Debt | Convertible Senior Notes Due 2019 | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 68,000 | $ 0 | $ 0 | 322,000 | ||||||||
Reduction in Dilutive Shares Attributable to Redemption of Conversion of Debt Securities | 6.4 | |||||||||||
Convertible Debt | Convertible Senior Notes Due 2017 and 2019 | ||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | 60,100 | |||||||||||
Repayments of Convertible Debt | 235,000 | |||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 17 | |||||||||||
Induced Conversion of Convertible Debt Expense | 41,800 | |||||||||||
Loss on induced conversion and debt extinguishment | 17,200 | |||||||||||
Write off of Deferred Debt Issuance Cost | $ 1,100 |
Note 12 - Senior Notes Senior N
Note 12 - Senior Notes Senior Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2016 | Jun. 30, 2015 | May 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | |
Senior Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||||
Senior Notes Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Senior Notes | Senior Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | |||||
Proceeds from Issuance of Long-term Debt | $ 293.8 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||||
Senior Notes | Senior Notes Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 350 | |||||
Proceeds from Issuance of Long-term Debt | $ 343.3 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Senior Notes | Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 350 | |||||
Proceeds from Issuance of Long-term Debt | $ 343.4 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Senior Notes | Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 450 | |||||
Proceeds from Issuance of Long-term Debt | $ 442.2 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Senior Notes | Senior Notes Due 2019, 2020, 2021 and 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Percent of Stock With Ordinary Voting Rights That Company Must Retain In Order To Make Any Capital Stock Transactions Under Debt Covenant Agreement | 80.00% | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Note 13 - Other Liabilities Com
Note 13 - Other Liabilities Components of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
FHLB advances | $ 82,532 | $ 0 |
Deferred ceding commission | 91,400 | 89,907 |
Accrued compensation | 61,452 | 67,687 |
Amount payable on the return of cash collateral under securities lending agreements | 11,699 | 19,357 |
Current federal income taxes | 0 | 96,740 |
Other | 86,576 | 80,154 |
Total other liabilities | $ 333,659 | $ 353,845 |
Note 13 - Other Liabilities FHL
Note 13 - Other Liabilities FHLB Advances (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Advances from Federal Home Loan Banks | $ 82,532 | $ 0 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 88,400 | |
Federal Home Loan Bank Advances | ||
Advances from Federal Home Loan Banks | $ 82,500 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 2.73% | |
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 90 days | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 60,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 3,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 8,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 9,000 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 2,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 88,400 | |
Federal Home Loan Bank Advances | Minimum | ||
Federal Home Loan Bank, Ratio of Market Value of Collateral to Advances | 1.03 | |
Federal Home Loan Bank Advances | Maximum | ||
Federal Home Loan Bank, Ratio of Market Value of Collateral to Advances | 1.05 |
Note 13 - Other Liabilities Rev
Note 13 - Other Liabilities Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Oct. 26, 2018 | Oct. 16, 2017 | |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Term | 3 years | ||
Line of Credit Facility, Current Borrowing Capacity | $ 267.5 | $ 225 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | ||
Line of Credit Facility, Increase to Current Borrowing Capacity | $ 42.5 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Note 14 - Commitments and Con_4
Note 14 - Commitments and Contingencies Legal Proceedings (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Aug. 31, 2018Certificates | Apr. 12, 2018Certificates | Jun. 05, 2017Certificates | Dec. 17, 2016Certificates | |
Insurance Claims | Total primary reserves | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Legal Actions Commencement, Period | 2 years | ||||
Insurance Claims | Total pool reserves | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Legal Actions Commencement, Period | 3 years | ||||
Ocwen | Initial | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 9,420 | ||||
Ocwen | Amended | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 8,870 | ||||
Ocwen | Narrowed Scope | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Whose Scopes Were Narrowed as a Result of the Confidential Agreement | 2,500 | ||||
Nationstar | Insurance coverage decisions | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 3,014 | ||||
Nationstar | Insurance premium refunds | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 2,231 | ||||
REMIC Residual | Internal Revenue Service (IRS) | |||||
Loss Contingencies [Line Items] | |||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | $ | $ 31 | ||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Refunded | $ | $ 58 |
Note 14 - Commitments and Con_5
Note 14 - Commitments and Contingencies Other (Details) $ in Millions | Dec. 31, 2018USD ($)transaction |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 |
Reserve For Contract Underwriting Obligations | $ | $ 0.2 |
Indirect Guarantee of Indebtedness | |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ | $ 87.8 |
Note 14 - Commitments and Con_6
Note 14 - Commitments and Contingencies Other: Commitment for Non Cancelable Operating Leases in Future Years (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Commitment for Non-Cancelable Operating Leases in Future Years [Abstract] | |||
Operating Leases, Rent Expense | $ 9,700 | $ 5,700 | $ 5,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 11,310 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 10,847 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 10,165 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 10,100 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 10,251 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 56,317 | ||
Operating Leases, Future Minimum Payments Due | 108,990 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 0 |
Note 15 - Capital Stock (Detail
Note 15 - Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 16, 2018 | Aug. 09, 2017 | Jun. 29, 2016 | |
Class of Stock [Line Items] | ||||||||||||||||||||
Payments for Repurchase of Common Stock | $ 50,053 | $ 6 | $ 100,188 | |||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | ||||||||
Convertible Debt | Convertible Senior Notes Due 2017 and 2019 | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 17,000,000 | |||||||||||||||||||
Convertible Debt | Convertible Senior Notes Due 2017 | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 200,000 | |||||||||||||||||||
Third Quarter 2018 Repurchase Program | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100,000 | 100,000 | ||||||||||||||||||
Third Quarter 2017 Repurchase Program | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||||||||||||||||||
Stock Repurchased During Period, Shares | 3,000,000 | |||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 16.56 | |||||||||||||||||||
Second Quarter 2016 Repurchase Program | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 125,000 | |||||||||||||||||||
Stock Repurchased During Period, Shares | 380 | |||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 15.59 | |||||||||||||||||||
First Quarter 2016 Repurchase Program | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 | $ 0 | ||||||||||||||||||
Stock Repurchased During Period, Shares | 9,400,000 | |||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 10.62 | |||||||||||||||||||
Payments for Repurchase of Common Stock | $ 100,200 |
Note 16 - Share-Based and Oth_3
Note 16 - Share-Based and Other Compensation Programs Awards Summary (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Equity Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum contractual term for all awards | 10 years |
Equity Compensation Plans | Pro Forma | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Acceleration of Compensation Expense | $ | $ 19.7 |
Equity Compensation Plans | Grants Awarded From May 13 2009 and Forward | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Change of control, grantee employment termination, vesting period range (in days and years) | 90 days |
Equity Compensation Plans | Grants Awarded From May 13 2009 and Forward | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Change of control, grantee employment termination, vesting period range (in days and years) | 1 year |
Amended and Restated Equity Compensation Plan, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares of common stock authorized for issuance | 8,954,109 |
Number of shares remaining available for grant (shares reserve) | 7,906,190 |
Share-based Compensation Arrangement By Share-based Payment Award Number of Shares Available for Grant Excluding Adjustments | 11,108,244 |
Amended and Restated Equity Compensation Plan, 2017 | Restricted Stock, Restricted Stock Units and Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Reduction of Shares Available for Grant by Each Grant of Equity Award | 1.31 |
Note 16 - Share-Based and Oth_4
Note 16 - Share-Based and Other Compensation Programs Awards Summary (Tables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 17,649 | $ 13,492 | $ 16,304 |
Less: Costs deferred as acquisition costs | 324 | 269 | 206 | |
Stock-based compensation expense impact on net loss before income taxes - increase | 17,325 | 13,223 | 16,098 | |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 453 | 432 | 449 |
RSUs - Cash Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Liability Recorded | 0 | 0 | 18 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 0 | 1 | (718) |
RSUs (Equity Settled) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 16,591 | $ 12,206 | $ 13,285 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 3,763,633 | 3,434,976 | 3,208,454 | |
Non-Qualified Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 603 | $ 851 | $ 3,286 |
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 1,312,791 | 1,692,743 | 2,839,738 | |
Phantom Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 2 | $ 2 | $ 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 234,427 | 234,302 | 234,174 | |
Equity (Equity Settled) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 17,649 | $ 13,491 | $ 17,022 |
[1] | For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. |
Note 16 - Share-Based and Oth_5
Note 16 - Share-Based and Other Compensation Programs RSUs - Cash Settled (Details) | Dec. 31, 2015shares |
Timed-Vested RSUs (Cash Settled) | 2009 and 2010 Award Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 262,694 |
Note 16 - Share-Based and Oth_6
Note 16 - Share-Based and Other Compensation Programs RSUs - Equity Settled (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)anniversary$ / sharesshares | Dec. 31, 2017USD ($)daysanniversary$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Feb. 10, 2016shares | ||
RSUs (Equity Settled) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Unvested, Beginning of Period, Number of Shares | [1] | 3,434,976 | |||
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | [1] | $ 12.90 | |||
Granted, Number of Shares | 1,058,045 | ||||
Granted, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 15.58 | $ 16.84 | $ 11.79 | ||
Vested, Number of Shares | (258,845) | ||||
Vested, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 12.61 | ||||
Forfeited, Number of Shares | (470,543) | ||||
Forfeited, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 18.07 | ||||
Unvested, End of Period, Number of Shares | [1] | 3,763,633 | 3,434,976 | ||
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | [1] | $ 13.04 | $ 12.90 | ||
Fair Value of RSUs Vested | $ | $ 3.3 | $ 1.4 | $ 5.8 | ||
Grants by Compensation Committee | 1,058,045 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 3,763,633 | 3,434,976 | 3,208,454 | ||
Performance Based RSUs (Equity Settled) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Number of Consecutive Trading Days For Vesting Requirement of Current Year Share-based Payment Awards | days | 10 | ||||
Performance Based RSUs (Equity Settled) | 2018 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | 595,320 | ||||
Grants by Compensation Committee | 595,320 | ||||
Award Requisite Service Period | 3 years | ||||
Maximum Payout Percentage of Target Award | 200.00% | ||||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||||
Performance Based RSUs (Equity Settled) | 2018 Award Year | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Performance Based RSUs (Equity Settled) | 2018 Award Year | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Performance Based RSUs (Equity Settled) | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | 456,510 | ||||
Grants by Compensation Committee | 456,510 | ||||
Award Requisite Service Period | 3 years | ||||
Maximum Payout Percentage of Target Award | 200.00% | ||||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Performance period | 3 years | ||||
Risk-free interest rate | [2] | 1.60% | |||
Volatility | [3] | 28.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | [4] | 30.60% | |||
Dividend yield | 0.06% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | [5] | 10.70% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period to Former CEO | 123,496 | ||||
Number of Days Prior to the First Anniversary of the Grant Date Upon Which the Performance Period Begins | 10 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 120.00% | ||||
Performance Based RSUs (Equity Settled) | 2017 Award Year | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
Performance Based RSUs (Equity Settled) | 2017 Award Year | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
Performance Based RSUs (Equity Settled) | 2016 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | 701,110 | ||||
Grants by Compensation Committee | 701,110 | ||||
Award Requisite Service Period | 3 years | ||||
Maximum Payout Percentage of Target Award | 200.00% | ||||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Performance period | 3 years | ||||
Risk-free interest rate | [2] | 0.90% | |||
Volatility | [3] | 29.70% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | [4] | 38.20% | |||
Dividend yield | 0.08% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | [5] | 10.70% | |||
Performance Based RSUs (Equity Settled) | 2016 Award Year | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
Performance Based RSUs (Equity Settled) | 2016 Award Year | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Award Requisite Service Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
Timed-Vested RSUs (Equity Settled) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Number of Anniversaries of the Grant Date | anniversary | 3 | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | ||
Timed-Vested RSUs (Equity Settled) | 2018 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [6] | 462,725 | |||
Grants by Compensation Committee | [6] | 462,725 | |||
Timed-Vested RSUs (Equity Settled) | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [6],[7] | 440,826 | |||
Grants by Compensation Committee | [6],[7] | 440,826 | |||
Timed-Vested RSUs (Equity Settled) | 2016 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [6],[8] | 536,420 | |||
Grants by Compensation Committee | [6],[8] | 536,420 | |||
Timed-Vested RSUs (Equity Settled) | 2009 and 2010 Award Years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 262,694 | ||||
Timed-Vested RSUs (Equity Settled) | Certain Executives and Non-Executive Officers | 2018 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [7] | 385,962 | |||
Grants by Compensation Committee | [7] | 385,962 | |||
Timed-Vested RSUs (Equity Settled) | Certain Executives and Non-Executive Officers | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [7] | 372,489 | |||
Grants by Compensation Committee | [7] | 372,489 | |||
Timed-Vested RSUs (Equity Settled) | Certain Executives and Non-Executive Officers | 2016 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [8] | 180,380 | |||
Grants by Compensation Committee | [8] | 180,380 | |||
Timed-Vested RSUs (Equity Settled) | Non-Employee Directors | 2018 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [9] | 76,763 | |||
Grants by Compensation Committee | [9] | 76,763 | |||
Timed-Vested RSUs (Equity Settled) | Non-Employee Directors | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [7] | 68,337 | |||
Grants by Compensation Committee | [7] | 68,337 | |||
Timed-Vested RSUs (Equity Settled) | Non-Employee Directors | 2016 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted, Number of Shares | [8],[10] | 356,040 | |||
Grants by Compensation Committee | [8],[10] | 356,040 | |||
Minimum | Performance Based RSUs (Equity Settled) | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Grants to Former CEO, Award Requisite Service Period | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ / shares | $ 22.46 | ||||
Minimum | Equity Compensation Plans | Performance Based RSUs (Equity Settled) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Post-Vesting Holding Period | 1 year | ||||
Minimum | Equity Compensation Plans | Timed-Vested RSUs (Equity Settled) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Maximum | Performance Based RSUs (Equity Settled) | 2017 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Grants to Former CEO, Award Requisite Service Period | 5 years | ||||
[1] | Included in unvested amounts are certain awards to employees and non-employee directors that are exercisable upon termination or retirement. | ||||
[2] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||
[3] | Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. | ||||
[4] | Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. | ||||
[5] | A discount is applied to executive officer awards to reflect illiquidity during the one-year post-vesting holding period. | ||||
[6] | The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period. | ||||
[7] | The time-vested RSU awards granted in 2018 and 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years | ||||
[8] | The time-vested RSU awards granted in 2016 generally are subject to three-year cliff vesting. | ||||
[9] | The time-vested RSU awards granted in 2018 to non-employee directors generally are subject to one-year cliff vesting. | ||||
[10] | Includes 262,694 |
Note 16 - Share-Based and Oth_7
Note 16 - Share-Based and Other Compensation Programs Non-Qualified Stock Options (Details) - Non-Qualified Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)days$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, Beginning of Period, Number of Shares | shares | 1,692,743 | 2,839,738 | ||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $ 8.16 | |||
Exercised, Number of Shares | shares | (375,573) | |||
Exercised, Weighted Average Exercise Price Per Share | $ 3.79 | |||
Forfeited, Number of Shares | shares | (4,379) | |||
Forfeited, Weighted Average Exercise Price Per Share | $ 14.38 | |||
Expired, Number of Shares | shares | 0 | |||
Expired, Weighted Average Exercise Price Per Share | $ 0 | |||
Outstanding, End of Period, Number of Shares | shares | 1,312,791 | 1,692,743 | 2,839,738 | |
Outstanding, End of Period, Weighted Average Exercise Price Per Share | $ 9.39 | $ 8.16 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 10 months 24 days | |||
Total intrinsic value of options outstanding | $ | [1] | $ 9,500 | ||
Exercisable, Number of Shares | shares | 966,478 | |||
Exercisable, Weighted Average Exercise Price Per Share | $ 7.91 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | [1] | $ 8,361 | ||
Available for grant | shares | 7,906,190 | |||
Share Price | $ 16.36 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 6,274 | $ 14,389 | $ 1,519 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (Deprecated 2017-01-31) | $ | 1,318 | 5,036 | 532 | |
Proceeds from Stock Options Exercised | $ | 1,425 | 7,131 | 717 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 1,300 | $ 3,300 | $ 1,300 | |
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | [2] | 1.72% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | [3] | 94.20% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.08% | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 days | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||
2018 Award Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted, Number of Shares | shares | 0 | |||
Granted, Weighted Average Exercise Price Per Share | $ 0 | |||
Weighted average fair value per share of stock options granted | [4] | $ 0 | ||
2017 Award Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted, Number of Shares | shares | 0 | |||
Weighted average fair value per share of stock options granted | [4] | $ 0 | ||
2016 Award Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted, Number of Shares | shares | 342,090 | |||
Weighted average fair value per share of stock options granted | [4] | $ 9.72 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||
2016 Award Year | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ 15.20 | |||
Share-based Compensation Award, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Share-based Compensation Award, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
[1] | Based on the market price of $16.36 | |||
[2] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||
[3] | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. | |||
[4] | We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 Derived service period (years) 3.02 - 4.00 Risk-free interest rate (a) 1.72 % Volatility (b) 94.20 % Dividend yield 0.08 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) |
Note 16 - Share-Based and Oth_8
Note 16 - Share-Based and Other Compensation Programs Non-Qualified Stock Options - Range of Exercise Prices for Outstanding and Exercisable Optons (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
$2.45 - $3.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | $ 2.45 |
Range of Exercise Prices, Upper Range Limit | 3.58 |
$5.76 - $7.06 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | 5.76 |
Range of Exercise Prices, Upper Range Limit | 7.06 |
$10.42 - $15.44 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | 10.42 |
Range of Exercise Prices, Upper Range Limit | 15.44 |
$ 18.42 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | $ 18.42 |
Non-Qualified Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 1,312,791 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 9.39 |
Options Exercisable, Number Exercisable | shares | 891,928 |
Options Exercisable, Weighted Average Exercise Price | $ 7.03 |
Non-Qualified Stock Options | $2.45 - $3.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 565,317 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.45 |
Options Exercisable, Number Exercisable | shares | 565,317 |
Options Exercisable, Weighted Average Exercise Price | $ 2.45 |
Non-Qualified Stock Options | $5.76 - $7.06 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 0 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 0 years |
Options Outstanding, Weighted Average Exercise Price | $ 0 |
Options Exercisable, Number Exercisable | shares | 0 |
Options Exercisable, Weighted Average Exercise Price | $ 0 |
Non-Qualified Stock Options | $10.42 - $15.44 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 578,612 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years |
Options Outstanding, Weighted Average Exercise Price | $ 13.53 |
Options Exercisable, Number Exercisable | shares | 306,611 |
Options Exercisable, Weighted Average Exercise Price | $ 14.74 |
Non-Qualified Stock Options | $18.42 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 168,862 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $ 18.42 |
Options Exercisable, Number Exercisable | shares | 20,000 |
Options Exercisable, Weighted Average Exercise Price | $ 18.42 |
Note 16 - Share-Based and Oth_9
Note 16 - Share-Based and Other Compensation Programs Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amended and Restated Radian Group Inc. Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Stock Purchase Plan (ESPP), Shares in ESPP | 1,250,000 | 1,250,000 | ||||
Shares sold to employees under ESPP Plans | 103,668 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (months) | 6 months | 6 months | 6 months | |||
Risk-free interest rate | 2.43% | 1.76% | ||||
Volatility | 32.80% | 31.49% | ||||
Dividend yield | 0.06% | 0.05% | ||||
Employee Stock Purchase Plan 2008 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares sold to employees under ESPP Plans | 105,476 | 151,121 | ||||
Subsequent Event | Amended and Restated Radian Group Inc. Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares sold to employees under ESPP Plans | 51,187 | |||||
Employee Stock Purchase Plan (ESPP), Number of Shares Available for Issuance | 1,997,613 |
Note 16 - Share-Based and Ot_10
Note 16 - Share-Based and Other Compensation Programs Unrecognized Compensation Expense (Details) - Equity Compensation Plans $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested portion of all stock-based awards | $ 23.9 |
Unrecognized compensation expense weighted average recognition period (in years) | 2 years 1 month 6 days |
Note 17 - Benefit Plans (Detail
Note 17 - Benefit Plans (Details) - Other Postretirement Benefits Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Maximum Percentage Of Base Earnings Qualifying For Pre-Tax Contributions | 100.00% | ||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $ 18,500 | ||
Defined Benefit Plan, Employee Discretionary Contribution Maximum Amount | $ 6,000 | ||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 100.00% | 100.00% | 100.00% |
Defined Contribution Plan Percentage Of Base Earnings Qualifying For Parent Company Matching Contribution | 6.00% | 4.50% | 4.50% |
Defined Contribution Plan, Cost | $ 6,100,000 | $ 4,800,000 | $ 4,900,000 |
Defined Contribution Plan, Employer Matching Contribution, Arrangement with Individual Requisite Service Period | 3 years |
Note 18 - Accumulated Other C_3
Note 18 - Accumulated Other Comprehensive Income (Loss) Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance at beginning of period, net of tax | $ 23,085 | |||
Unrealized holding gains (losses) arising during the period, net of tax | (97,356) | $ 31,903 | $ 8,782 | |
Less: Reclassification adjustment for net gains (losses) included in net income, net of tax | (10,270) | (2,642) | 2,251 | |
Net unrealized gains (losses) on investments, net of tax | (87,086) | 34,545 | 6,531 | |
Unrealized foreign currency translation adjustments, net of tax | 5 | 150 | (474) | |
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income, net of tax | 1 | (721) | 0 | |
Net foreign currency translation adjustments | 4 | 871 | (474) | |
Net actuarial gains (losses), net of tax | 129 | 64 | 25 | |
OCI, net of tax | (86,953) | 35,480 | 6,082 | |
Balance at end of period, net of tax | (60,920) | 23,085 | ||
Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Balance at beginning of period, before tax | 32,669 | (19,063) | (28,425) | |
Balance adjusted for cumulative effect of adopting accounting standard updates, before tax | 32,953 | |||
Unrealized holding gains (losses) arising during the period, before tax | (123,235) | 46,235 | 13,510 | |
Less: Reclassification adjustment for net gains (losses) included in net income, before tax | [1] | (13,000) | (4,065) | 3,463 |
Net unrealized gains (losses) on investments | (110,235) | 50,300 | 10,047 | |
Unrealized foreign currency translation adjustments, before tax | 225 | |||
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income, before tax | [2] | (1,109) | ||
Net foreign currency translation adjustments, before tax | 5 | 1,334 | (724) | |
Net actuarial gain (loss), before tax | 163 | 98 | 39 | |
OCI, before tax | (110,067) | 51,732 | 9,362 | |
Balance at end of period, before tax | (77,114) | 32,669 | (19,063) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Balance at beginning of period, tax | 9,584 | (6,668) | (9,948) | |
Balance adjusted for cumulative effect of adopting accounting standard updates, tax | 6,920 | |||
Unrealized holding gains (losses) arising during the period, tax | (25,879) | 14,332 | 4,728 | |
Less: Reclassification adjustment for net gains (losses) included in net income, tax | [1] | (2,730) | (1,423) | 1,212 |
Net unrealized gains (losses) on investments, tax | (23,149) | 15,755 | 3,516 | |
Unrealized foreign currency translation adjustments, tax | 75 | |||
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income, tax | [2] | (388) | ||
Net foreign currency translation adjustments, tax | 1 | 463 | (250) | |
Net actuarial gains (losses), tax | 34 | 34 | 14 | |
OCI, tax | (23,114) | 16,252 | 3,280 | |
Balance at end of period, tax | (16,194) | 9,584 | (6,668) | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance at beginning of period, net of tax | 23,085 | (12,395) | (18,477) | |
Balance adjusted for cumulative effect of adopting accounting standard updates, net of tax | 26,033 | |||
Unrealized holding gains (losses) arising during the period, net of tax | (97,356) | 31,903 | 8,782 | |
Less: Reclassification adjustment for net gains (losses) included in net income, net of tax | [1] | (10,270) | (2,642) | 2,251 |
Net unrealized gains (losses) on investments, net of tax | (87,086) | 34,545 | 6,531 | |
Unrealized foreign currency translation adjustments, net of tax | 150 | |||
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income, net of tax | [2] | (721) | ||
Net foreign currency translation adjustments | 4 | 871 | (474) | |
Net actuarial gains (losses), net of tax | 129 | 64 | 25 | |
OCI, net of tax | (86,953) | 35,480 | 6,082 | |
Balance at end of period, net of tax | (60,920) | $ 23,085 | $ (12,395) | |
ASU 2016-01 | Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update, before tax | 284 | |||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update, tax | 60 | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update for financial instruments, net of tax | 224 | |||
ASU 2018-02 | Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update, before tax | 0 | |||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update, tax | (2,724) | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Cumulative effect of adopting the accounting standard update for financial instruments, net of tax | $ 2,724 | |||
[1] | Included in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. | |||
[2] | Included in restructuring and other exit costs in our consolidated statements of operations. |
Note 19 - Statutory Informati_3
Note 19 - Statutory Information Statutory Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Statutory Accounting Practices [Line Items] | |||||
Restricted Net Assets Held by Consolidated Subsidiaries | $ 3,600,000 | ||||
PENNSYLVANIA | |||||
Statutory Accounting Practices [Line Items] | |||||
Policyholder Dividends, Rate on Policy Earnings | 10.00% | ||||
Radian Guaranty | |||||
Statutory Accounting Practices [Line Items] | |||||
Surplus Note | $ 100,000 | $ 100,000 | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 175,000 | (450,000) | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Increase (Decrease) | 175,000 | (56,000) | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 814,100 | 1,201,000 | $ 1,349,700 | ||
Negative Unassigned Surplus | 701,900 | 765,000 | |||
Statutory Accounting Practices, Statutory Net Income Amount | 501,900 | 445,100 | 480,800 | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||
Impact of Reallocation of Capital on Available Assets Under PMIERs | $ 0 | ||||
Radian Reinsurance | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory Accounting Practices, Statutory Capital and Surplus, Increase (Decrease) | (175,000) | ||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 356,200 | 328,900 | 147,600 | ||
Negative Unassigned Surplus | 84,800 | 112,100 | |||
Statutory Accounting Practices, Statutory Net Income Amount | 86,100 | 64,300 | $ 60,300 | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||
Capital Contributions | (175,000) | ||||
Radian Group Inc. | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | (175,000) | ||||
Capital Contributions | $ 175,000 | ||||
Parent Company | |||||
Statutory Accounting Practices [Line Items] | |||||
Restricted Net Assets Held by Consolidated Subsidiaries | $ 3,927,268 | $ 3,764,865 |
Note 19 - Statutory Informati_4
Note 19 - Statutory Information Radian Guaranty (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)state | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Risk to Capital Line Items [Line Items] | |||||
Risk To Capital Ratio, Regulatory Maximum | 25 | ||||
Risk-to-capital | 12.8 | 12.1 | |||
Radian Guaranty | |||||
Risk to Capital Line Items [Line Items] | |||||
Statutory Accounting Practices, Statutory Net Income Amount | $ 501.9 | $ 445.1 | $ 480.8 | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 814.1 | 1,201 | 1,349.7 | ||
Contingency reserve | 2,109.9 | 1,667 | $ 1,260.6 | ||
RIF, net | [1] | 40,711.3 | 36,793.5 | ||
Common stock and paid-in capital | 1,416 | 1,866 | |||
Surplus Note | 100 | 100 | |||
Unassigned earnings (deficit) | (701.9) | (765) | |||
Statutory Accounting Practice, Statutory Position | $ 2,924 | $ 2,868 | |||
Risk-to-capital | 13.9 | 12.8 | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Increase (Decrease) | $ (175) | $ 56 | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | (175) | $ 450 | |||
Related Party Transaction, Rate | 0.00% | ||||
Radian Group Inc. | |||||
Risk to Capital Line Items [Line Items] | |||||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 175 | ||||
Radian Group Inc. | Parent Company | |||||
Risk to Capital Line Items [Line Items] | |||||
Marketable Securities | $ 100 | ||||
Minimum | Radian Guaranty | |||||
Risk to Capital Line Items [Line Items] | |||||
Surplus Note, Notice of Redemption Period | 30 days | ||||
State Insurance Regulations | |||||
Risk to Capital Line Items [Line Items] | |||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state | 16 | ||||
Non RBC States | Minimum | |||||
Risk to Capital Line Items [Line Items] | |||||
Capital Required for Capital Adequacy | $ 1 | ||||
Non RBC States | Maximum | |||||
Risk to Capital Line Items [Line Items] | |||||
Capital Required for Capital Adequacy | $ 5 | ||||
[1] | Excludes risk ceded through all reinsurance programs (including with affiliates) and RIF on defaulted loans. |
Note 19 - Statutory Informati_5
Note 19 - Statutory Information Radian Reinsurance (Details) - Radian Reinsurance - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 20 | |||
Capital Contributions | $ 175 | |||
Statutory Accounting Practices, Statutory Net Income Amount | 86.1 | $ 64.3 | $ 60.3 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 356.2 | 328.9 | 147.6 | |
Contingency Reserve | $ 293.5 | $ 234 | $ 180.3 |
Note 19 - Statutory Informati_6
Note 19 - Statutory Information Combined Risk-to-Capital Ratio and Other Mortgage Insurance Subsidiaries (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)subsidiaries | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Risk To Capital Ratio | 12.8 | 12.1 | |
Number of Subsidiaries | subsidiaries | 5 | ||
Radian Insurance | |||
RIF, net | $ 15 | ||
Other MI Companies | |||
Statutory Accounting Practices, Statutory Net Income Amount | (2.8) | $ 0.1 | $ (6.1) |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 58 | 58.6 | 57.1 |
Contingency Reserve | $ 1.7 | $ 1.7 | $ 1.5 |
Note 19 - Statutory Informati_7
Note 19 - Statutory Information EnTitle Insurance (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Amounts Held in Escrow | $ 4.7 |
EnTitle Insurance | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 27 |
Statutory Accounting Practices, Statutory Net Income Amount | $ (1.8) |
Note 19 - Statutory Informati_8
Note 19 - Statutory Information Principal Differences between GAAP and SAPP (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Differences Between GAAP Basis and SAPP Basis | |
Mortgage Guaranty Insurance Companies Are Required Each Year To Establish A Contingency Reserve Equal To This Percentage Of Premiums Earned In Such Year | 50.00% |
Note 20 - Quarterly Financial_3
Note 20 - Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Net premiums earned—insurance | $ 261,682 | $ 258,431 | $ 251,344 | $ 242,550 | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 1,014,007 | $ 932,773 | $ 921,769 | ||||||||||
Services revenue | 38,414 | 36,566 | 36,828 | 33,164 | 39,703 | 39,571 | 37,802 | 38,027 | 144,972 | 155,103 | 168,894 | ||||||||||
Net investment income | 42,051 | 38,995 | 37,473 | 33,956 | 33,605 | 32,540 | 30,071 | 31,032 | 152,475 | 127,248 | 113,466 | ||||||||||
Net Gains (Losses) on Investments and Other Financial Instruments | (11,705) | (4,480) | (7,404) | (18,887) | (1,339) | 2,480 | 5,331 | (2,851) | (42,476) | 3,621 | 30,751 | ||||||||||
Provision for losses | 27,140 | 20,881 | 19,337 | 37,283 | 35,178 | 35,841 | 17,222 | 46,913 | 104,641 | 135,154 | 202,788 | ||||||||||
Policy acquisition costs | 6,485 | 5,667 | 5,996 | 7,117 | 5,871 | 5,554 | 6,123 | 6,729 | 25,265 | 24,277 | 23,480 | ||||||||||
Cost of services | 24,939 | 25,854 | 24,205 | 23,126 | 23,349 | 27,240 | 25,635 | 28,375 | 98,124 | 104,599 | 114,174 | ||||||||||
Other operating expenses | 77,266 | 70,125 | 70,184 | 63,243 | 65,999 | 64,195 | 68,750 | 68,377 | 280,818 | 267,321 | 244,896 | ||||||||||
Restructuring and other exit costs | 113 | 4,464 | 925 | 551 | 5,230 | 12,038 | 0 | 0 | 6,053 | 17,268 | 0 | ||||||||||
Loss on induced conversion and debt extinguishment | 0 | 45,766 | 1,247 | 4,456 | 0 | 51,469 | 75,075 | ||||||||||||||
Impairment of goodwill | 0 | 0 | 184,374 | 0 | 0 | 184,374 | 0 | ||||||||||||||
Amortization and impairment of other acquired intangible assets | 3,461 | 3,472 | 2,748 | 2,748 | 2,629 | 2,890 | 18,856 | 3,296 | 12,429 | 27,671 | 13,221 | ||||||||||
Net income | $ 139,779 | $ 142,797 | $ 208,949 | $ 114,486 | $ 6,816 | [1] | $ 65,142 | $ (27,342) | $ 76,472 | $ 606,011 | $ 121,088 | $ 308,253 | |||||||||
Diluted net income per share | $ 0.64 | [2] | $ 0.66 | [2] | $ 0.96 | [2] | $ 0.52 | [2] | $ 0.03 | [1],[2] | $ 0.30 | [2] | $ (0.13) | [2] | $ 0.34 | [2] | $ 2.77 | [2] | $ 0.55 | [2] | $ 1.37 |
Weighted-average number of common and common equivalent shares outstanding—diluted | 217,883 | 217,902 | 217,830 | 219,883 | 220,250 | 219,391 | 215,152 | 221,497 | 218,553 | 220,406 | 229,258 | ||||||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. | ||||||||||||||||||||
[2] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. |
Schedule I Summary Of Investm_3
Schedule I Summary Of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | $ 5,264,919 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | [1] | 5,180,889 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | [1] | 5,180,889 | ||
Loaned securities | 27,860 | $ 27,964 | ||
Securities Received as Collateral | 11,700 | 19,357 | ||
Securities Financing Transaction, Fair Value | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
Loaned securities | [2] | 27,860 | 27,964 | |
Securities Received as Collateral | [3] | 11,699 | 19,357 | |
US government and agency securities | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 85,532 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 84,070 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 84,070 | |||
State and municipal obligations | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 138,022 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 138,313 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 138,313 | |||
Corporate bonds and notes | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 2,288,720 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 2,229,885 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 2,229,885 | |||
RMBS | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 334,843 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 332,142 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 332,142 | |||
CMBS | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 546,729 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 539,915 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 539,915 | |||
Other ABS | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 712,748 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 704,662 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 704,662 | |||
Total fixed-maturities available for sale | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 4,106,594 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 4,028,987 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 4,028,987 | |||
Total fixed-maturities available for sale | Securities Financing Transaction, Fair Value | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
Loaned securities | 7,400 | [2] | $ 14,700 | |
Trading securities | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 468,696 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 469,071 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 469,071 | |||
Common stocks | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 150,344 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 140,620 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 140,620 | |||
Total equity securities | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 150,344 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 140,620 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 140,620 | |||
Short-term Investments | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | [4] | 538,977 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | [4] | 538,796 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | [4] | 538,796 | ||
Other invested assets | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 308 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,415 | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 3,415 | |||
Trading Securities | Securities Financing Transaction, Fair Value | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
Loaned securities | 10,100 | |||
Equity securities | Securities Financing Transaction, Fair Value | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||||
Loaned securities | $ 10,400 | |||
[1] | . | |||
[2] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None | |||
[3] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments in our consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our consolidated balance sheets. | |||
[4] | Includes cash collateral held under securities lending agreements of $11.7 million |
Schedule II Financial Informa_3
Schedule II Financial Information of Registrant Parent Company Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed-maturities available for sale—at fair value | $ 4,021,575 | $ 3,458,719 |
Trading securities—at fair value | 469,071 | 606,401 |
Equity Securities, FV-NI | 130,565 | |
Equity securities—at fair value | 162,830 | |
Short-term investments—at fair value | 528,403 | 415,658 |
Total investments | 5,153,029 | 4,643,942 |
Cash | 95,393 | 80,569 |
Investment in subsidiaries, at equity in net assets (Note B) | 3,600,000 | |
Federal income taxes recoverable, net—current | 43,800 | |
Other assets (Note D) | 367,700 | 407,849 |
Total assets | 6,314,652 | 5,900,881 |
Liabilities and Stockholders’ Equity | ||
Other liabilities | 333,659 | 353,845 |
Total liabilities | 2,825,937 | 2,900,843 |
Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2018 and 2017; 231,132 and 233,417 shares issued at December 31, 2018 and 2017, respectively; 213,473 and 215,814 shares outstanding at December 31, 2018 and 2017, respectively | 231 | 233 |
Treasury stock, at cost: 17,660 and 17,603 shares at December 31, 2018 and 2017, respectively | (894,870) | (893,888) |
Additional paid-in capital | 2,724,733 | 2,754,275 |
Retained earnings | 1,719,541 | 1,116,333 |
Accumulated other comprehensive income (loss) | (60,920) | 23,085 |
Total common stockholders’ equity | 3,488,715 | 3,000,038 |
Liabilities and Equity | 6,314,652 | 5,900,881 |
Parent Company | ||
Assets | ||
Fixed-maturities available for sale—at fair value | 321,401 | 10,785 |
Trading securities—at fair value | 56,011 | 0 |
Equity Securities, FV-NI | 29,375 | |
Equity securities—at fair value | 0 | |
Short-term investments—at fair value | 238,185 | 83,356 |
Total investments | 644,972 | 94,141 |
Cash | 32,352 | 13,173 |
Investment in subsidiaries, at equity in net assets (Note B) | 3,927,268 | 3,764,865 |
Accounts and notes receivable (Note C) | 101,072 | 103,561 |
Federal income taxes recoverable, net—current | 49,381 | 35,741 |
Other assets (Note D) | 58,993 | 166,051 |
Total assets | 4,814,038 | 4,177,532 |
Liabilities and Stockholders’ Equity | ||
Senior Notes (Note E) | 1,030,348 | 1,027,074 |
Federal income taxes—deferred | 243,341 | 97,067 |
Other liabilities | 51,634 | 53,353 |
Total liabilities | 1,325,323 | 1,177,494 |
Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2018 and 2017; 231,132 and 233,417 shares issued at December 31, 2018 and 2017, respectively; 213,473 and 215,814 shares outstanding at December 31, 2018 and 2017, respectively | 231 | 233 |
Treasury stock, at cost: 17,660 and 17,603 shares at December 31, 2018 and 2017, respectively | (894,870) | (893,888) |
Additional paid-in capital | 2,724,733 | 2,754,275 |
Retained earnings | 1,719,541 | 1,116,333 |
Accumulated other comprehensive income (loss) | (60,920) | 23,085 |
Total common stockholders’ equity | 3,488,715 | 3,000,038 |
Liabilities and Equity | $ 4,814,038 | $ 4,177,532 |
Balance Sheet Parentheticals [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 231,132,000 | 233,417,000 |
Common Stock, Shares, Outstanding | 213,473,000 | 215,814,000 |
Treasury Stock, Shares | 17,660,000 | 17,603,000 |
Schedule II Financial Informa_4
Schedule II Financial Information of Registrant Parent Company Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | ||||||||||||
Net investment income | $ 42,051 | $ 38,995 | $ 37,473 | $ 33,956 | $ 33,605 | $ 32,540 | $ 30,071 | $ 31,032 | $ 152,475 | $ 127,248 | $ 113,466 | |
Net gains (losses) on investments and other financial instruments | (41,125) | 3,207 | 31,004 | |||||||||
Other income | 4,028 | 2,886 | 3,572 | |||||||||
Total revenues | 1,273,006 | 1,221,631 | 1,238,452 | |||||||||
Expenses: | ||||||||||||
Loss on induced conversion and debt extinguishment | 0 | (45,766) | (1,247) | (4,456) | 0 | (51,469) | (75,075) | |||||
Interest expense | 61,490 | 62,761 | 81,132 | |||||||||
Total expenses (Note F) | 588,820 | 874,894 | 754,766 | |||||||||
Pretax gain (loss) from continuing operations | 684,186 | 346,737 | 483,686 | |||||||||
Income tax benefit | 78,175 | 225,649 | 175,433 | |||||||||
Net income | $ 139,779 | $ 142,797 | $ 208,949 | $ 114,486 | $ 6,816 | [1] | $ 65,142 | $ (27,342) | $ 76,472 | 606,011 | 121,088 | 308,253 |
Other comprehensive income (loss), net of tax | (86,953) | 35,480 | 6,082 | |||||||||
Comprehensive income | 519,058 | 156,568 | 314,335 | |||||||||
Parent Company | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 21,294 | 22,528 | 20,834 | |||||||||
Net gains (losses) on investments and other financial instruments | (470) | (328) | (150) | |||||||||
Other income | 0 | 80 | 49 | |||||||||
Total revenues | 20,824 | 22,280 | 20,733 | |||||||||
Expenses: | ||||||||||||
Loss on induced conversion and debt extinguishment | 0 | 51,469 | 75,075 | |||||||||
Interest expense | 17,805 | 18,033 | 29,002 | |||||||||
Total expenses (Note F) | 17,805 | 69,502 | 104,077 | |||||||||
Pretax gain (loss) from continuing operations | 3,019 | (47,222) | (83,344) | |||||||||
Income tax benefit | (3,319) | (141,437) | (8,676) | |||||||||
Equity in net income of affiliates | 599,673 | 26,873 | 382,921 | |||||||||
Net income | 606,011 | 121,088 | 308,253 | |||||||||
Other comprehensive income (loss), net of tax | (86,953) | 35,480 | 6,082 | |||||||||
Comprehensive income | $ 519,058 | $ 156,568 | $ 314,335 | |||||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Schedule II Financial Informa_5
Schedule II Financial Information of Registrant Parent Company Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from investing activities: | |||
Proceeds from sales of Fixed-maturity investments available-for-sale | $ 728,584 | $ 888,219 | $ 687,173 |
Proceeds from sales of Trading securities | 58,317 | 194,784 | 290,855 |
Proceeds from sales of Equity securities | 95,697 | 38,318 | 74,868 |
Proceeds from redemptions of Fixed-maturity investments available for sale | 457,595 | 463,548 | 337,630 |
Proceeds from redemptions of Trading securities | 54,329 | 79,296 | 123,645 |
Purchases of Fixed-maturity investments available for sale | (1,875,069) | (1,947,916) | (1,990,652) |
Sales, redemptions and (purchases) of Short-term investments, net | (108,325) | 324,258 | 334,456 |
Acquisition of subsidiaries | (7,964) | (86) | (150) |
Cash flows from financing activities: | |||
Dividends paid | (2,140) | (2,154) | (2,105) |
Issuance of senior notes, net | 0 | 442,163 | 343,417 |
Purchases and redemptions of senior notes | 0 | (593,527) | (445,072) |
Proceeds from termination of capped calls | 0 | 4,208 | 0 |
Issuance of common stock | 1,385 | 7,132 | 717 |
Purchase of common shares | (50,053) | (6) | (100,188) |
Excess tax benefits from stock-based awards (Note A) | 0 | 0 | 333 |
Increase (decrease) in cash and restricted cash | 10,758 | 34,430 | 1,916 |
Cash and restricted cash, beginning of period | 96,244 | 61,814 | 59,898 |
Cash and restricted cash, end of period | 107,002 | 96,244 | 61,814 |
Parent Company | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 254,698 | (23,654) | 38,902 |
Cash flows from investing activities: | |||
Proceeds from sales of Fixed-maturity investments available-for-sale | 6,779 | 58,007 | 47,058 |
Proceeds from sales of Trading securities | 0 | 0 | 30,350 |
Proceeds from sales of Equity securities | 0 | 0 | 24,992 |
Proceeds from redemptions of Fixed-maturity investments available for sale | 12,391 | 60,414 | 49,578 |
Proceeds from redemptions of Trading securities | 0 | 0 | 10,000 |
Purchases of Fixed-maturity investments available for sale | (37,552) | (134,456) | (137,431) |
Sales, redemptions and (purchases) of Short-term investments, net | (131,164) | 210,529 | (40,288) |
Sales, redemptions and (purchases) of Other assets, net | (3,317) | (1,107) | 239 |
Capital distributions from subsidiaries | 0 | 924 | 15,000 |
Capital contributions to subsidiaries | (30,338) | (21,643) | (1,500) |
Acquisition of subsidiaries | 0 | 0 | (30,443) |
(Issuance) repayment of note receivable from affiliate (Note C) | 0 | (44) | 201,631 |
Net cash provided by (used in) investing activities | (183,201) | 172,624 | 169,186 |
Cash flows from financing activities: | |||
Dividends paid | (2,140) | (2,154) | (2,105) |
Issuance of senior notes, net | 0 | 442,163 | 343,417 |
Purchases and redemptions of senior notes | 0 | (593,527) | (445,072) |
Proceeds from termination of capped calls | 0 | 4,208 | 0 |
Issuance of common stock | 1,385 | 7,132 | 717 |
Purchase of common shares | (50,053) | (6) | (100,188) |
Credit facility commitment fees paid | (1,510) | (1,993) | 0 |
Excess tax benefits from stock-based awards (Note A) | 0 | 0 | 98 |
Net cash provided by (used in) financing activities | (52,318) | (144,177) | (203,133) |
Increase (decrease) in cash and restricted cash | 19,179 | 4,793 | 4,955 |
Cash and restricted cash, beginning of period | 13,173 | 8,380 | 3,425 |
Cash and restricted cash, end of period | $ 32,352 | $ 13,173 | $ 8,380 |
Schedule II Financial Informa_6
Schedule II Financial Information of Registrant Parent Company Only Financial Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)transaction | Dec. 31, 2017USD ($)subsidiaries | Dec. 31, 2016USD ($) | Jan. 31, 2017USD ($) | Jan. 27, 2017USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | $ 94,815 | $ 72,764 | $ 56,446 | ||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 42,195 | 44,686 | 52,092 | ||||||
Total investments | $ 4,643,942 | 5,153,029 | 4,643,942 | ||||||
Fixed-maturities available for sale—at fair value | 3,458,719 | 4,021,575 | 3,458,719 | ||||||
Short-term investments—at fair value (includes $11,699 and $19,357 of reinvested cash collateral held under securities lending agreements) | 415,658 | 528,403 | 415,658 | ||||||
Supplemental Notes [Abstract] | |||||||||
Loss on induced conversion and debt extinguishment (Note 12) | 0 | $ (45,766) | $ (1,247) | $ (4,456) | 0 | (51,469) | (75,075) | ||
Repayments of Long-term Debt | 0 | 593,527 | 445,072 | ||||||
Issuance of common stock | 1,385 | 7,132 | 717 | ||||||
Reductions in Other Assets, Amount | 107,100 | ||||||||
Available-for-sale Securities, Equity Securities | 162,830 | 162,830 | |||||||
Additions to Other Assets, Amount | $ 28,700 | ||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | ||||||||
Convertible Senior Notes Due 2017 | Convertible Debt | |||||||||
Supplemental Notes [Abstract] | |||||||||
Debt Instrument, Repurchased Face Amount | 0 | 21,600 | 0 | 30,100 | |||||
Convertible Senior Notes Due 2019 | Convertible Debt | |||||||||
Supplemental Notes [Abstract] | |||||||||
Debt Instrument, Repurchased Face Amount | 0 | 0 | 322,000 | $ 68,000 | |||||
Parent Company | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Total investments | 94,141 | $ 644,972 | 94,141 | ||||||
Fixed-maturities available for sale—at fair value | 10,785 | 321,401 | 10,785 | ||||||
Short-term investments—at fair value (includes $11,699 and $19,357 of reinvested cash collateral held under securities lending agreements) | 83,356 | 238,185 | 83,356 | ||||||
Supplemental Notes [Abstract] | |||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 137,010 | 117,450 | 108,538 | ||||||
Dividends Received From Consolidated Subsidiaries | 26,500 | ||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 98,100 | 521,000 | |||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 30,338 | 21,643 | 1,500 | ||||||
Proceeds from Contributions from Affiliates | 0 | 924 | 15,000 | ||||||
Tax Payments to Parent from Subsidiaries | 229,600 | 50,700 | |||||||
Loss on induced conversion and debt extinguishment (Note 12) | 0 | 51,469 | 75,075 | ||||||
Repayments of Long-term Debt | 0 | 593,527 | 445,072 | ||||||
Issuance of common stock | 1,385 | 7,132 | 717 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 158,623 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 234,126 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 197,661 | ||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 450,000 | ||||||||
Long-term Debt, Gross | 1,040,410 | ||||||||
Available-for-sale Securities, Equity Securities | 0 | 0 | |||||||
Parent Company | Convertible Senior Notes Due 2017 | Convertible Debt | |||||||||
Supplemental Notes [Abstract] | |||||||||
Debt Instrument, Repurchased Face Amount | $ 21,600 | ||||||||
Parent Company | Convertible Senior Notes Due 2019 | Convertible Debt | |||||||||
Supplemental Notes [Abstract] | |||||||||
Debt Instrument, Repurchased Face Amount | $ 68,000 | ||||||||
Radian Title Services Inc. | |||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 30,300 | ||||||||
Enhance Financial Services Group, Inc. | |||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 1,700 | ||||||||
Transfer from Investments | 3,100 | ||||||||
Clayton Group Holdings Inc. | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Notes Receivable, Related Parties | 300,000 | 300,000 | 300,000 | ||||||
Interest Receivable | 42,700 | 42,700 | |||||||
Allowance for Doubtful Accounts Receivable | 42,700 | 60,500 | 42,700 | ||||||
Increase (Decrease) Due from Other Related Parties | 13,000 | ||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 66,100 | ||||||||
Transfer from Investments | 342,700 | ||||||||
Radian Guaranty | |||||||||
Supplemental Notes [Abstract] | |||||||||
Dividends Received From Consolidated Subsidiaries | 450,000 | 175,000 | |||||||
Transfer from Investments | 100,000 | ||||||||
Transfer to Investments | 394,600 | 153,600 | |||||||
Proceeds from Contributions from Affiliates | 55,400 | ||||||||
Surplus Notes | 100,000 | 100,000 | 100,000 | ||||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,201,000 | 814,100 | $ 1,201,000 | 1,349,700 | |||||
Radian Mortgage Insurance Inc., Radian Mortgage Reinsurance Company and RDN Investments, Inc. [Member] | |||||||||
Supplemental Notes [Abstract] | |||||||||
Number of Subsidiaries | subsidiaries | 3 | ||||||||
Radian Reinsurance | |||||||||
Supplemental Notes [Abstract] | |||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | $ 175,000 | ||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 21,400 | ||||||||
Transfer from Investments | 153,600 | ||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 20,000 | ||||||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 328,900 | 356,200 | 328,900 | $ 147,600 | |||||
RDN Investments | |||||||||
Supplemental Notes [Abstract] | |||||||||
Dividends Received From Consolidated Subsidiaries | 600 | ||||||||
Proceeds from Contributions from Affiliates | 500 | ||||||||
Distribution of Deferred and Current Tax Recoverables | 100 | ||||||||
Radian Mortgage Reinsurance | |||||||||
Supplemental Notes [Abstract] | |||||||||
Dividends Received From Consolidated Subsidiaries | 1,000 | ||||||||
Proceeds from Contributions from Affiliates | 600 | ||||||||
Distribution of Deferred and Current Tax Recoverables | 400 | ||||||||
Radian Mortgage Assurance | |||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 200 | ||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000 | ||||||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 8,700 | ||||||||
Risk In Force | $ 0 | ||||||||
Radian Mortgage Insurance Inc | |||||||||
Supplemental Notes [Abstract] | |||||||||
Dividends Received From Consolidated Subsidiaries | 24,900 | ||||||||
Proceeds from Contributions from Affiliates | 2,700 | ||||||||
Distribution of Deferred and Current Tax Recoverables | $ 22,200 | ||||||||
Indirect Guarantee of Indebtedness | |||||||||
Supplemental Notes [Abstract] | |||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | ||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 87,800 | ||||||||
Internal Revenue Service (IRS) | |||||||||
Supplemental Notes [Abstract] | |||||||||
Qualified Deposit With The U.S. Department Of Treasury Relating To Prior Examinations | 88,600 | ||||||||
Five Bridges | Clayton Group Holdings Inc. | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Increase (Decrease) Due from Other Related Parties | 8,500 | ||||||||
REMIC Residual | Internal Revenue Service (IRS) | |||||||||
Supplemental Notes [Abstract] | |||||||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | 31,000 | ||||||||
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Refunded | 58,000 | ||||||||
Impairment on Intercompany Interest Receivable | Clayton Group Holdings Inc. | |||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 17,800 | ||||||||
Intercompany Receivable | Clayton Group Holdings Inc. | |||||||||
Supplemental Notes [Abstract] | |||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 48,300 | ||||||||
Allowance for Notes, Loans and Financing Receivable, Current | $ 48,300 |
Schedule II Financial Informa_7
Schedule II Financial Information of Registrant Parent Company Parenthetical (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 231,132,000 | 233,417,000 |
Common Stock, Shares, Outstanding | 213,473,000 | 215,814,000 |
Treasury Stock, Shares | 17,660,000 | 17,603,000 |
Clayton Group Holdings Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes Receivable, Related Parties | $ 300 | $ 300 |
Radian Guaranty | ||
Condensed Financial Statements, Captions [Line Items] | ||
Surplus Notes | $ 100 | $ 100 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||||||
Direct Premiums Earned | $ 1,074,298 | $ 990,016 | $ 999,093 | ||||||||
Ceded Premiums Earned | 67,195 | 57,271 | 77,359 | ||||||||
Assumed Premiums Earned | 6,904 | 28 | 35 | ||||||||
Net premiums earned—insurance | $ 261,682 | $ 258,431 | $ 251,344 | $ 242,550 | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 1,014,007 | $ 932,773 | $ 921,769 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.68% | 0.00% | 0.00% |